Correlation Between CSG Systems and China Solar

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

Diversification Opportunities for CSG Systems and China Solar

0.69

Correlation Coefficient

CSG Systems  China Solar

Poor diversification

The 3 months correlation between CSG and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and China Solar Cln in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Solar Cln 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 China Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Solar Cln has no effect on the direction of CSG Systems i.e., CSG Systems and China Solar go up and down completely randomly.

Pair Corralation between CSG Systems and China Solar

Given the investment horizon of 90 days CSG Systems International is expected to generate 0.02 times more return on investment than China Solar. However, CSG Systems International is 45.84 times less risky than China Solar. It trades about -0.2 of its potential returns per unit of risk. China Solar Cln is currently generating about -0.06 per unit of risk. If you would invest  7,849  in CSG Systems International on September 14, 2025 and sell it today you would lose (138.00) from holding CSG Systems International or give up 1.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	95.45%
Values	Daily Returns

CSG Systems International  vs.  China Solar Cln

CSG Systems International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CSG Systems International are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating technical and fundamental indicators, CSG Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

China Solar Cln

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in China Solar Cln are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite fragile basic indicators, China Solar disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSG Systems and China Solar

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

The idea behind CSG Systems International and China Solar Cln 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.