Correlation Between Cass Information and SP Plus
Can any of the company-specific risk be diversified away by investing in both Cass Information and SP Plus 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 Cass Information and SP Plus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cass Information Systems and SP Plus Corp, you can compare the effects of market volatilities on Cass Information and SP Plus 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 Cass Information with a short position of SP Plus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cass Information and SP Plus.
Diversification Opportunities for Cass Information and SP Plus
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cass and SP Plus is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Cass Information Systems and SP Plus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Plus Corp and Cass Information 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 Cass Information Systems are associated (or correlated) with SP Plus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Plus Corp has no effect on the direction of Cass Information i.e., Cass Information and SP Plus go up and down completely randomly.
Pair Corralation between Cass Information and SP Plus
Given the investment horizon of 90 days Cass Information Systems is expected to under-perform the SP Plus. In addition to that, Cass Information is 1.09 times more volatile than SP Plus Corp. It trades about 0.0 of its total potential returns per unit of risk. SP Plus Corp is currently generating about 0.04 per unit of volatility. If you would invest 3,708 in SP Plus Corp on November 1, 2024 and sell it today you would earn a total of 213.00 from holding SP Plus Corp or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 22.87% |
| Values | Daily Returns |
Cass Information Systems vs. SP Plus Corp
Performance |
| Timeline |
| Cass Information Systems |
| SP Plus Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cass Information and SP Plus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cass Information and SP Plus
The main advantage of trading using opposite Cass Information and SP Plus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cass Information position performs unexpectedly, SP Plus 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 SP Plus will offset losses from the drop in SP Plus' long position.| Cass Information vs. First Advantage Corp | Cass Information vs. Rentokil Initial PLC | Cass Information vs. CBIZ Inc | Cass Information vs. Civeo Corp |
| SP Plus vs. Cass Information Systems | SP Plus vs. First Advantage Corp | SP Plus vs. Rentokil Initial PLC | SP Plus vs. CBIZ Inc |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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