Correlation Between CSG Systems and ASGN
Can any of the company-specific risk be diversified away by investing in both CSG Systems and ASGN 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 CSG Systems and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSG Systems International and ASGN Inc, you can compare the effects of market volatilities on CSG Systems and ASGN 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 CSG Systems with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and ASGN.
Diversification Opportunities for CSG Systems and ASGN
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSG and ASGN is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and CSG Systems 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 CSG Systems International are associated (or correlated) with ASGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASGN Inc has no effect on the direction of CSG Systems i.e., CSG Systems and ASGN go up and down completely randomly.
Pair Corralation between CSG Systems and ASGN
Given the investment horizon of 90 days CSG Systems International is expected to generate 0.8 times more return on investment than ASGN. However, CSG Systems International is 1.24 times less risky than ASGN. It trades about 0.15 of its potential returns per unit of risk. ASGN Inc is currently generating about 0.0 per unit of risk. If you would invest 4,024 in CSG Systems International on September 5, 2024 and sell it today you would earn a total of 1,448 from holding CSG Systems International or generate 35.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. ASGN Inc
Performance |
| Timeline |
| CSG Systems International |
| ASGN Inc |
CSG Systems and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and ASGN
The main advantage of trading using opposite CSG Systems and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, ASGN 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 ASGN will offset losses from the drop in ASGN's long position.| CSG Systems vs. ASGN Inc | CSG Systems vs. Formula Systems 1985 | CSG Systems vs. FiscalNote Holdings | CSG Systems vs. International Business Machines |
| ASGN vs. Discount Print USA | ASGN vs. Cass Information Systems | ASGN vs. Civeo Corp | ASGN vs. Network 1 Technologies |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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