Correlation Between CSG Systems and Squarespace
Can any of the company-specific risk be diversified away by investing in both CSG Systems and Squarespace 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 Squarespace 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 Squarespace, you can compare the effects of market volatilities on CSG Systems and Squarespace 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 Squarespace. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Squarespace.
Diversification Opportunities for CSG Systems and Squarespace
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CSG and Squarespace is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Squarespace in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Squarespace 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 Squarespace. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Squarespace has no effect on the direction of CSG Systems i.e., CSG Systems and Squarespace go up and down completely randomly.
Pair Corralation between CSG Systems and Squarespace
Given the investment horizon of 90 days CSG Systems is expected to generate 37.12 times less return on investment than Squarespace. But when comparing it to its historical volatility, CSG Systems International is 1.18 times less risky than Squarespace. It trades about 0.0 of its potential returns per unit of risk. Squarespace is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,150 in Squarespace on August 23, 2024 and sell it today you would earn a total of 2,507 from holding Squarespace or generate 116.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.96% |
| Values | Daily Returns |
CSG Systems International vs. Squarespace
Performance |
| Timeline |
| CSG Systems International |
| Squarespace |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
CSG Systems and Squarespace Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and Squarespace
The main advantage of trading using opposite CSG Systems and Squarespace positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, Squarespace 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 Squarespace will offset losses from the drop in Squarespace's long position.| CSG Systems vs. Palo Alto Networks | CSG Systems vs. Zscaler | CSG Systems vs. Cloudflare | CSG Systems vs. Okta Inc |
| Squarespace vs. Wex Inc | Squarespace vs. CSG Systems International | Squarespace vs. VeriSign | Squarespace 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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