Correlation Between Casio Computer and CSE Global

Can any of the company-specific risk be diversified away by investing in both Casio Computer and CSE Global 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 Casio Computer and CSE Global into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Casio Computer Co and CSE Global Limited, you can compare the effects of market volatilities on Casio Computer and CSE Global 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 Casio Computer with a short position of CSE Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Casio Computer and CSE Global.

Diversification Opportunities for Casio Computer and CSE Global

0.78

Correlation Coefficient

Casio Computer  CSE Global

Poor diversification

The 3 months correlation between Casio and CSE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Casio Computer Co and CSE Global Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSE Global Limited and Casio Computer 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 Casio Computer Co are associated (or correlated) with CSE Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSE Global Limited has no effect on the direction of Casio Computer i.e., Casio Computer and CSE Global go up and down completely randomly.

Pair Corralation between Casio Computer and CSE Global

Assuming the 90 days horizon Casio Computer is expected to generate 2.54 times less return on investment than CSE Global. But when comparing it to its historical volatility, Casio Computer Co is 2.03 times less risky than CSE Global. It trades about 0.08 of its potential returns per unit of risk. CSE Global Limited is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  37.00  in CSE Global Limited on May 15, 2025 and sell it today you would earn a total of  11.00  from holding CSE Global Limited or generate 29.73% return on investment over 90 days.

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

Casio Computer Co  vs.  CSE Global Limited

Casio Computer

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Casio Computer Co are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile basic indicators, Casio Computer showed solid returns over the last few months and may actually be approaching a breakup point.

CSE Global Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CSE Global Limited are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak forward-looking indicators, CSE Global reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Casio Computer and CSE Global

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

The idea behind Casio Computer Co and CSE Global Limited 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.