Correlation Between Capgemini and CSE Global

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

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

Diversification Opportunities for Capgemini and CSE Global

0.0

Correlation Coefficient

Capgemini  CSE Global

Pay attention - limited upside

The 3 months correlation between Capgemini and CSE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capgemini SE and CSE Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global and Capgemini 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 Capgemini SE are associated (or correlated) with CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global has no effect on the direction of Capgemini i.e., Capgemini and CSE Global go up and down completely randomly.

Pair Corralation between Capgemini and CSE Global

If you would invest  340.00  in CSE Global on May 17, 2025 and sell it today you would earn a total of  0.00  from holding CSE Global or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Capgemini SE  vs.  CSE Global

Capgemini SE

Risk-Adjusted Performance

Weakest

Over the last 90 days Capgemini SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Stock's primary indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

CSE Global

Risk-Adjusted Performance

Weakest

Over the last 90 days CSE Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking indicators, CSE Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Capgemini and CSE Global

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

The idea behind Capgemini SE and CSE Global 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.