Correlation Between PFSweb and Cass Information
Can any of the company-specific risk be diversified away by investing in both PFSweb and Cass Information 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 PFSweb and Cass Information into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PFSweb Inc and Cass Information Systems, you can compare the effects of market volatilities on PFSweb and Cass Information 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 PFSweb with a short position of Cass Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of PFSweb and Cass Information.
Diversification Opportunities for PFSweb and Cass Information
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PFSweb and Cass is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding PFSweb Inc and Cass Information Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cass Information Systems and PFSweb 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 PFSweb Inc are associated (or correlated) with Cass Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cass Information Systems has no effect on the direction of PFSweb i.e., PFSweb and Cass Information go up and down completely randomly.
Pair Corralation between PFSweb and Cass Information
Given the investment horizon of 90 days PFSweb Inc is expected to under-perform the Cass Information. In addition to that, PFSweb is 1.77 times more volatile than Cass Information Systems. It trades about -0.04 of its total potential returns per unit of risk. Cass Information Systems is currently generating about 0.02 per unit of volatility. If you would invest 4,069 in Cass Information Systems on August 24, 2024 and sell it today you would earn a total of 427.00 from holding Cass Information Systems or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 32.06% |
| Values | Daily Returns |
PFSweb Inc vs. Cass Information Systems
Performance |
| Timeline |
| PFSweb Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cass Information Systems |
PFSweb and Cass Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PFSweb and Cass Information
The main advantage of trading using opposite PFSweb and Cass Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PFSweb position performs unexpectedly, Cass Information 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 Cass Information will offset losses from the drop in Cass Information's long position.| PFSweb vs. Network 1 Technologies | PFSweb vs. Rentokil Initial PLC | PFSweb vs. Cass Information Systems | PFSweb vs. Maximus |
| Cass Information vs. First Advantage Corp | Cass Information vs. Civeo Corp | Cass Information vs. Performant Financial | Cass Information vs. Network 1 Technologies |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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