Correlation Between CSG Systems and TruBridge

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

Diversification Opportunities for CSG Systems and TruBridge

-0.29

Correlation Coefficient

CSG Systems  TruBridge

Very good diversification

The 3 months correlation between CSG and TruBridge is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and TruBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TruBridge 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 TruBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TruBridge has no effect on the direction of CSG Systems i.e., CSG Systems and TruBridge go up and down completely randomly.

Pair Corralation between CSG Systems and TruBridge

Given the investment horizon of 90 days CSG Systems International is expected to generate 0.81 times more return on investment than TruBridge. However, CSG Systems International is 1.24 times less risky than TruBridge. It trades about 0.05 of its potential returns per unit of risk. TruBridge is currently generating about -0.13 per unit of risk. If you would invest  5,971  in CSG Systems International on May 1, 2025 and sell it today you would earn a total of  256.00  from holding CSG Systems International or generate 4.29% 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.  TruBridge

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 3 (%) 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.

TruBridge

Risk-Adjusted Performance

Very Weak

Over the last 90 days TruBridge has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CSG Systems and TruBridge

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

The idea behind CSG Systems International and TruBridge 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.