Correlation Between Pixelworks and CSP

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

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

Diversification Opportunities for Pixelworks and CSP

-0.26

Correlation Coefficient

Pixelworks  CSP

Very good diversification

The 3 months correlation between Pixelworks and CSP is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Pixelworks and CSP Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSP Inc and Pixelworks 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 Pixelworks are associated (or correlated) with CSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSP Inc has no effect on the direction of Pixelworks i.e., Pixelworks and CSP go up and down completely randomly.

Pair Corralation between Pixelworks and CSP

Given the investment horizon of 90 days Pixelworks is expected to generate 1.24 times less return on investment than CSP. In addition to that, Pixelworks is 2.82 times more volatile than CSP Inc. It trades about 0.01 of its total potential returns per unit of risk. CSP Inc is currently generating about 0.04 per unit of volatility. If you would invest  1,070  in CSP Inc on August 10, 2025 and sell it today you would earn a total of  55.00  from holding CSP Inc or generate 5.14% return on investment over 90 days.

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

Pixelworks  vs.  CSP Inc

Pixelworks

Risk-Adjusted Performance

Weakest

Over the last 90 days Pixelworks has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak essential indicators, Pixelworks may actually be approaching a critical reversion point that can send shares even higher in December 2025.

CSP Inc

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CSP Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, CSP may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Pixelworks and CSP

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

The idea behind Pixelworks and CSP Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.