Correlation Between Usio and Corsair Gaming

Can any of the company-specific risk be diversified away by investing in both Usio and Corsair Gaming 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 Usio and Corsair Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Usio Inc and Corsair Gaming, you can compare the effects of market volatilities on Usio and Corsair Gaming 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 Usio with a short position of Corsair Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Usio and Corsair Gaming.

Diversification Opportunities for Usio and Corsair Gaming

0.26

Correlation Coefficient

Usio  Corsair Gaming

Modest diversification

The 3 months correlation between Usio and Corsair is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Usio Inc and Corsair Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Corsair Gaming and Usio 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 Usio Inc are associated (or correlated) with Corsair Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Corsair Gaming has no effect on the direction of Usio i.e., Usio and Corsair Gaming go up and down completely randomly.

Pair Corralation between Usio and Corsair Gaming

Given the investment horizon of 90 days Usio Inc is expected to generate 1.27 times more return on investment than Corsair Gaming. However, Usio is 1.27 times more volatile than Corsair Gaming. It trades about 0.0 of its potential returns per unit of risk. Corsair Gaming is currently generating about -0.04 per unit of risk. If you would invest  165.00  in Usio Inc on September 20, 2024 and sell it today you would lose (37.00) from holding Usio Inc or give up 22.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Usio Inc  vs.  Corsair Gaming

Usio Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Usio Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's forward indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Corsair Gaming

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Corsair Gaming has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Corsair Gaming is not utilizing all of its potentials. The recent stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Usio and Corsair Gaming

The main advantage of trading using opposite Usio and Corsair Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Usio position performs unexpectedly, Corsair Gaming 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 Corsair Gaming will offset losses from the drop in Corsair Gaming's long position.

The idea behind Usio Inc and Corsair Gaming pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.