Correlation Between CSP and ASGN
Can any of the company-specific risk be diversified away by investing in both CSP 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 CSP and ASGN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSP Inc and ASGN Inc, you can compare the effects of market volatilities on CSP 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 CSP with a short position of ASGN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP and ASGN.
Diversification Opportunities for CSP and ASGN
Very good diversification
The 3 months correlation between CSP and ASGN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and ASGN Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASGN Inc and CSP 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 CSP Inc 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 CSP i.e., CSP and ASGN go up and down completely randomly.
Pair Corralation between CSP and ASGN
Given the investment horizon of 90 days CSP is expected to generate 1.16 times less return on investment than ASGN. In addition to that, CSP is 1.71 times more volatile than ASGN Inc. It trades about 0.11 of its total potential returns per unit of risk. ASGN Inc is currently generating about 0.22 per unit of volatility. If you would invest 8,286 in ASGN Inc on November 2, 2024 and sell it today you would earn a total of 601.00 from holding ASGN Inc or generate 7.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSP Inc vs. ASGN Inc
Performance |
| Timeline |
| CSP Inc |
| ASGN Inc |
CSP and ASGN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSP and ASGN
The main advantage of trading using opposite CSP and ASGN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP 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.| CSP vs. The Hackett Group | CSP vs. Nayax | CSP vs. Formula Systems 1985 | CSP vs. Information Services Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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