Correlation Between CCC Intelligent and CSG Systems
Can any of the company-specific risk be diversified away by investing in both CCC Intelligent 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 CCC Intelligent and CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CCC Intelligent Solutions and CSG Systems International, you can compare the effects of market volatilities on CCC Intelligent 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 CCC Intelligent with a short position of CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCC Intelligent and CSG Systems.
Diversification Opportunities for CCC Intelligent and CSG Systems
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CCC and CSG is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CCC Intelligent Solutions 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 CCC Intelligent 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 CCC Intelligent Solutions 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 CCC Intelligent i.e., CCC Intelligent and CSG Systems go up and down completely randomly.
Pair Corralation between CCC Intelligent and CSG Systems
Given the investment horizon of 90 days CCC Intelligent Solutions is expected to under-perform the CSG Systems. In addition to that, CCC Intelligent is 1.16 times more volatile than CSG Systems International. It trades about -0.12 of its total potential returns per unit of risk. CSG Systems International is currently generating about 0.57 per unit of volatility. If you would invest 5,056 in CSG Systems International on November 2, 2024 and sell it today you would earn a total of 748.00 from holding CSG Systems International or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCC Intelligent Solutions vs. CSG Systems International
Performance |
| Timeline |
| CCC Intelligent Solutions |
| CSG Systems International |
CCC Intelligent and CSG Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCC Intelligent and CSG Systems
The main advantage of trading using opposite CCC Intelligent and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCC Intelligent 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.| CCC Intelligent vs. CSG Systems International | CCC Intelligent vs. Consensus Cloud Solutions | CCC Intelligent vs. Secureworks Corp | CCC Intelligent vs. Evertec |
| 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |