Correlation Between CSG Systems and Glimpse
Can any of the company-specific risk be diversified away by investing in both CSG Systems and Glimpse 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 Glimpse 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 Glimpse Group, you can compare the effects of market volatilities on CSG Systems and Glimpse 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 Glimpse. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Glimpse.
Diversification Opportunities for CSG Systems and Glimpse
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between CSG and Glimpse is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Glimpse Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glimpse Group 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 Glimpse. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glimpse Group has no effect on the direction of CSG Systems i.e., CSG Systems and Glimpse go up and down completely randomly.
Pair Corralation between CSG Systems and Glimpse
Given the investment horizon of 90 days CSG Systems is expected to generate 35.31 times less return on investment than Glimpse. But when comparing it to its historical volatility, CSG Systems International is 9.58 times less risky than Glimpse. It trades about 0.04 of its potential returns per unit of risk. Glimpse Group is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 66.00 in Glimpse Group on October 16, 2024 and sell it today you would earn a total of 116.00 from holding Glimpse Group or generate 175.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
CSG Systems International vs. Glimpse Group
Performance |
Timeline |
CSG Systems International |
Glimpse Group |
CSG Systems and Glimpse Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSG Systems and Glimpse
The main advantage of trading using opposite CSG Systems and Glimpse positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, Glimpse 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 Glimpse will offset losses from the drop in Glimpse's long position.CSG Systems vs. NetScout Systems | ||
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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