Correlation Between CSP and International Money

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

By analyzing existing cross correlation between CSP Inc and International Money Express, you can compare the effects of market volatilities on CSP and International Money 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 CSP with a short position of International Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSP and International Money.

Diversification Opportunities for CSP and International Money

0.18

Correlation Coefficient

CSP  International Money

Average diversification

The 3 months correlation between CSP and International is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CSP Inc and International Money Express in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Money and CSP 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 CSP Inc are associated (or correlated) with International Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Money has no effect on the direction of CSP i.e., CSP and International Money go up and down completely randomly.

Pair Corralation between CSP and International Money

Given the investment horizon of 90 days CSP Inc is expected to under-perform the International Money. But the stock apears to be less risky and, when comparing its historical volatility, CSP Inc is 2.06 times less risky than International Money. The stock trades about -0.05 of its potential returns per unit of risk. The International Money Express is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,110  in International Money Express on May 27, 2025 and sell it today you would earn a total of  343.00  from holding International Money Express or generate 30.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CSP Inc  vs.  International Money Express

CSP Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CSP Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

International Money

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in International Money Express are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, International Money demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSP and International Money

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

The idea behind CSP Inc and International Money Express 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.

Check out your portfolio center.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.