Correlation Between CSP and Computer Task
Can any of the company-specific risk be diversified away by investing in both CSP and Computer Task 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 Computer Task into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSP Inc and Computer Task Group, you can compare the effects of market volatilities on CSP and Computer Task 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 Computer Task. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP and Computer Task.
Diversification Opportunities for CSP and Computer Task
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CSP and Computer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and Computer Task Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer Task Group 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 Computer Task. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer Task Group has no effect on the direction of CSP i.e., CSP and Computer Task go up and down completely randomly.
Pair Corralation between CSP and Computer Task
If you would invest 634.00 in CSP Inc on January 15, 2025 and sell it today you would earn a total of 884.00 from holding CSP Inc or generate 139.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CSP Inc vs. Computer Task Group
Performance |
| Timeline |
| CSP Inc |
| Computer Task Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
CSP and Computer Task Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSP and Computer Task
The main advantage of trading using opposite CSP and Computer Task positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSP position performs unexpectedly, Computer Task 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 Computer Task will offset losses from the drop in Computer Task's long position.| CSP vs. The Hackett Group | ||
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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