Correlation Between CSG Systems and Blackbaud
Can any of the company-specific risk be diversified away by investing in both CSG Systems and Blackbaud 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 Blackbaud 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 Blackbaud, you can compare the effects of market volatilities on CSG Systems and Blackbaud 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 Blackbaud. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Blackbaud.
Diversification Opportunities for CSG Systems and Blackbaud
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between CSG and Blackbaud is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Blackbaud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackbaud 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 Blackbaud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackbaud has no effect on the direction of CSG Systems i.e., CSG Systems and Blackbaud go up and down completely randomly.
Pair Corralation between CSG Systems and Blackbaud
Given the investment horizon of 90 days CSG Systems International is expected to generate 0.99 times more return on investment than Blackbaud. However, CSG Systems International is 1.01 times less risky than Blackbaud. It trades about 0.07 of its potential returns per unit of risk. Blackbaud is currently generating about 0.03 per unit of risk. If you would invest 5,840 in CSG Systems International on April 24, 2025 and sell it today you would earn a total of 393.00 from holding CSG Systems International or generate 6.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
CSG Systems International vs. Blackbaud
Performance |
Timeline |
CSG Systems International |
Blackbaud |
CSG Systems and Blackbaud Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CSG Systems and Blackbaud
The main advantage of trading using opposite CSG Systems and Blackbaud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, Blackbaud 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 Blackbaud will offset losses from the drop in Blackbaud's long position.CSG Systems vs. Genpact Limited | CSG Systems vs. Broadridge Financial Solutions | CSG Systems vs. BrightView Holdings | CSG Systems vs. First Advantage Corp |
Blackbaud vs. CommVault Systems | Blackbaud vs. Manhattan Associates | Blackbaud vs. Agilysys | Blackbaud vs. ACI Worldwide |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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