Correlation Between CSG Systems and Insperity

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

Diversification Opportunities for CSG Systems and Insperity

-0.43

Correlation Coefficient

CSG Systems  Insperity

Very good diversification

The 3 months correlation between CSG and Insperity is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Insperity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insperity 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 Insperity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insperity has no effect on the direction of CSG Systems i.e., CSG Systems and Insperity go up and down completely randomly.

Pair Corralation between CSG Systems and Insperity

Given the investment horizon of 90 days CSG Systems International is expected to generate 0.94 times more return on investment than Insperity. However, CSG Systems International is 1.07 times less risky than Insperity. It trades about -0.15 of its potential returns per unit of risk. Insperity is currently generating about -0.15 per unit of risk. If you would invest  6,473  in CSG Systems International on April 13, 2025 and sell it today you would lose (288.00) from holding CSG Systems International or give up 4.45% of portfolio value over 90 days.

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

CSG Systems International  vs.  Insperity

CSG Systems International

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CSG Systems International are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. 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.

Insperity

Risk-Adjusted Performance

Very Weak

Over the last 90 days Insperity has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in August 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with CSG Systems and Insperity

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

The idea behind CSG Systems International and Insperity 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.