Correlation Between ACI Worldwide and CSG Systems
Can any of the company-specific risk be diversified away by investing in both ACI Worldwide and CSG Systems at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining ACI Worldwide and CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ACI Worldwide and CSG Systems International, you can compare the effects of market volatilities on ACI Worldwide and CSG Systems and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in ACI Worldwide with a short position of CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACI Worldwide and CSG Systems.
Diversification Opportunities for ACI Worldwide and CSG Systems
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ACI and CSG is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding ACI Worldwide and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International and ACI Worldwide is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on ACI Worldwide are associated (or correlated) with CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of ACI Worldwide i.e., ACI Worldwide and CSG Systems go up and down completely randomly.
Pair Corralation between ACI Worldwide and CSG Systems
Given the investment horizon of 90 days ACI Worldwide is expected to generate 1.21 times more return on investment than CSG Systems. However, ACI Worldwide is 1.21 times more volatile than CSG Systems International. It trades about 0.28 of its potential returns per unit of risk. CSG Systems International is currently generating about 0.32 per unit of risk. If you would invest 4,956 in ACI Worldwide on August 27, 2024 and sell it today you would earn a total of 875.00 from holding ACI Worldwide or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ACI Worldwide vs. CSG Systems International
Performance |
| Timeline |
| ACI Worldwide |
| CSG Systems International |
ACI Worldwide and CSG Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ACI Worldwide and CSG Systems
The main advantage of trading using opposite ACI Worldwide and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACI Worldwide position performs unexpectedly, CSG Systems can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CSG Systems will offset losses from the drop in CSG Systems' long position.| ACI Worldwide vs. GigaCloud Technology Class | ACI Worldwide vs. Arqit Quantum | ACI Worldwide vs. Telos Corp | ACI Worldwide vs. Cemtrex |
| CSG Systems vs. NetScout Systems | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Secureworks Corp | CSG Systems vs. Evertec |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
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