Correlation Between CSG Systems and Arbe Robotics

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

Diversification Opportunities for CSG Systems and Arbe Robotics

0.53

Correlation Coefficient

CSG Systems  Arbe Robotics

Very weak diversification

The 3 months correlation between CSG and Arbe is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Arbe Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arbe Robotics 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 Arbe Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arbe Robotics has no effect on the direction of CSG Systems i.e., CSG Systems and Arbe Robotics go up and down completely randomly.

Pair Corralation between CSG Systems and Arbe Robotics

Given the investment horizon of 90 days CSG Systems International is expected to under-perform the Arbe Robotics. But the stock apears to be less risky and, when comparing its historical volatility, CSG Systems International is 3.68 times less risky than Arbe Robotics. The stock trades about -0.05 of its potential returns per unit of risk. The Arbe Robotics is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  148.00  in Arbe Robotics on May 15, 2025 and sell it today you would lose (12.50) from holding Arbe Robotics or give up 8.45% of portfolio value over 90 days.

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

CSG Systems International  vs.  Arbe Robotics

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.

Arbe Robotics

Risk-Adjusted Performance

Weakest

Over the last 90 days Arbe Robotics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Arbe Robotics is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with CSG Systems and Arbe Robotics

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

The idea behind CSG Systems International and Arbe Robotics 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.