Correlation Between CSG Systems and Oneconnect Financial
Can any of the company-specific risk be diversified away by investing in both CSG Systems and Oneconnect Financial 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 Oneconnect Financial 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 Oneconnect Financial Technology, you can compare the effects of market volatilities on CSG Systems and Oneconnect Financial 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 Oneconnect Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Oneconnect Financial.
Diversification Opportunities for CSG Systems and Oneconnect Financial
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSG and Oneconnect is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Oneconnect Financial Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneconnect Financial 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 Oneconnect Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneconnect Financial has no effect on the direction of CSG Systems i.e., CSG Systems and Oneconnect Financial go up and down completely randomly.
Pair Corralation between CSG Systems and Oneconnect Financial
Given the investment horizon of 90 days CSG Systems International is expected to generate 0.26 times more return on investment than Oneconnect Financial. However, CSG Systems International is 3.86 times less risky than Oneconnect Financial. It trades about 0.01 of its potential returns per unit of risk. Oneconnect Financial Technology is currently generating about 0.0 per unit of risk. If you would invest 5,397 in CSG Systems International on August 30, 2024 and sell it today you would earn a total of 62.00 from holding CSG Systems International or generate 1.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. Oneconnect Financial Technolog
Performance |
| Timeline |
| CSG Systems International |
| Oneconnect Financial |
CSG Systems and Oneconnect Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and Oneconnect Financial
The main advantage of trading using opposite CSG Systems and Oneconnect Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, Oneconnect Financial 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 Oneconnect Financial will offset losses from the drop in Oneconnect Financial'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 |
| Oneconnect Financial vs. Trust Stamp | Oneconnect Financial vs. Amesite Operating Co | Oneconnect Financial vs. My Size | Oneconnect Financial vs. Kingsoft Cloud Holdings |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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