Correlation Between CSG Systems and Alight

Can any of the company-specific risk be diversified away by investing in both CSG Systems and Alight 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 Alight 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 Alight Inc, you can compare the effects of market volatilities on CSG Systems and Alight 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 Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Alight.

Diversification Opportunities for CSG Systems and Alight

0.3

Correlation Coefficient

CSG Systems  Alight

Weak diversification

The 3 months correlation between CSG and Alight is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc 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 Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of CSG Systems i.e., CSG Systems and Alight go up and down completely randomly.

Pair Corralation between CSG Systems and Alight

Given the investment horizon of 90 days CSG Systems International is expected to generate 0.48 times more return on investment than Alight. However, CSG Systems International is 2.09 times less risky than Alight. It trades about -0.03 of its potential returns per unit of risk. Alight Inc is currently generating about -0.2 per unit of risk. If you would invest  6,441  in CSG Systems International on May 19, 2025 and sell it today you would lose (217.00) from holding CSG Systems International or give up 3.37% of portfolio value over 90 days.

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

CSG Systems International  vs.  Alight Inc

CSG Systems International

Risk-Adjusted Performance

Weakest

Over the last 90 days CSG Systems International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, CSG Systems is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Alight Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days Alight Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's forward indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CSG Systems and Alight

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

The idea behind CSG Systems International and Alight Inc 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.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.