Correlation Between CSG Systems and Immunocore Holdings

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

Diversification Opportunities for CSG Systems and Immunocore Holdings

-0.12

Correlation Coefficient

CSG Systems  Immunocore Holdings

Good diversification

The 3 months correlation between CSG and Immunocore is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Immunocore Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immunocore Holdings 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 Immunocore Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immunocore Holdings has no effect on the direction of CSG Systems i.e., CSG Systems and Immunocore Holdings go up and down completely randomly.

Pair Corralation between CSG Systems and Immunocore Holdings

Given the investment horizon of 90 days CSG Systems is expected to generate 38.1 times less return on investment than Immunocore Holdings. But when comparing it to its historical volatility, CSG Systems International is 1.85 times less risky than Immunocore Holdings. It trades about 0.0 of its potential returns per unit of risk. Immunocore Holdings is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  2,769  in Immunocore Holdings on May 14, 2025 and sell it today you would earn a total of  420.00  from holding Immunocore Holdings or generate 15.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

CSG Systems International  vs.  Immunocore Holdings

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.

Immunocore Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Immunocore Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively conflicting fundamental indicators, Immunocore Holdings reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSG Systems and Immunocore Holdings

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

The idea behind CSG Systems International and Immunocore Holdings 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.