Correlation Between First Advantage and CSG Systems
Can any of the company-specific risk be diversified away by investing in both First Advantage and CSG Systems 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 First Advantage and CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Advantage Corp and CSG Systems International, you can compare the effects of market volatilities on First Advantage and CSG Systems 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 First Advantage with a short position of CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Advantage and CSG Systems.
Diversification Opportunities for First Advantage and CSG Systems
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between First and CSG is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding First Advantage Corp and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International and First Advantage 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 First Advantage Corp are associated (or correlated) with CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of First Advantage i.e., First Advantage and CSG Systems go up and down completely randomly.
Pair Corralation between First Advantage and CSG Systems
Allowing for the 90-day total investment horizon First Advantage Corp is expected to generate 0.93 times more return on investment than CSG Systems. However, First Advantage Corp is 1.07 times less risky than CSG Systems. It trades about 0.06 of its potential returns per unit of risk. CSG Systems International is currently generating about 0.01 per unit of risk. If you would invest 1,216 in First Advantage Corp on August 30, 2024 and sell it today you would earn a total of 757.00 from holding First Advantage Corp or generate 62.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First Advantage Corp vs. CSG Systems International
Performance |
| Timeline |
| First Advantage Corp |
| CSG Systems International |
First Advantage and CSG Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Advantage and CSG Systems
The main advantage of trading using opposite First Advantage and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Advantage position performs unexpectedly, CSG Systems 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 CSG Systems will offset losses from the drop in CSG Systems' long position.| First Advantage vs. Manhattan Associates | First Advantage vs. Paycom Soft | First Advantage vs. Clearwater Analytics Holdings | First Advantage vs. Procore Technologies |
| CSG Systems vs. Oneconnect Financial Technology | CSG Systems vs. Global Business Travel | CSG Systems vs. Alight Inc | CSG Systems vs. CS Disco LLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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