Correlation Between CSG Systems and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both CSG Systems and CCC Intelligent 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 CCC Intelligent 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 CCC Intelligent Solutions, you can compare the effects of market volatilities on CSG Systems and CCC Intelligent 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 CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and CCC Intelligent.
Diversification Opportunities for CSG Systems and CCC Intelligent
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CSG and CCC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and CCC Intelligent Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC Intelligent Solutions 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 CCC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC Intelligent Solutions has no effect on the direction of CSG Systems i.e., CSG Systems and CCC Intelligent go up and down completely randomly.
Pair Corralation between CSG Systems and CCC Intelligent
Given the investment horizon of 90 days CSG Systems International is expected to generate 1.47 times more return on investment than CCC Intelligent. However, CSG Systems is 1.47 times more volatile than CCC Intelligent Solutions. It trades about 0.03 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about 0.02 per unit of risk. If you would invest 5,145 in CSG Systems International on August 27, 2024 and sell it today you would earn a total of 406.00 from holding CSG Systems International or generate 7.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. CCC Intelligent Solutions
Performance |
| Timeline |
| CSG Systems International |
| CCC Intelligent Solutions |
CSG Systems and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and CCC Intelligent
The main advantage of trading using opposite CSG Systems and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, CCC Intelligent 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 CCC Intelligent will offset losses from the drop in CCC Intelligent's long position.| CSG Systems vs. Oneconnect Financial Technology | CSG Systems vs. Global Business Travel | CSG Systems vs. Alight Inc | CSG Systems vs. CS Disco LLC |
| CCC Intelligent vs. CSG Systems International | CCC Intelligent vs. Consensus Cloud Solutions | CCC Intelligent vs. Secureworks Corp | CCC Intelligent 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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