Correlation Between CSG Systems and Alight
Can any of the company-specific risk be diversified away by investing in both CSG Systems and Alight 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 Alight 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 Alight Inc, you can compare the effects of market volatilities on CSG Systems and Alight 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 Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSG Systems and Alight.
Diversification Opportunities for CSG Systems and Alight
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CSG and Alight is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CSG Systems International and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc 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 Alight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alight Inc has no effect on the direction of CSG Systems i.e., CSG Systems and Alight go up and down completely randomly.
Pair Corralation between CSG Systems and Alight
Given the investment horizon of 90 days CSG Systems is expected to generate 3.12 times less return on investment than Alight. But when comparing it to its historical volatility, CSG Systems International is 1.33 times less risky than Alight. It trades about 0.05 of its potential returns per unit of risk. Alight Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 496.00 in Alight Inc on April 15, 2025 and sell it today you would earn a total of 72.00 from holding Alight Inc or generate 14.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSG Systems International vs. Alight Inc
Performance |
| Timeline |
| CSG Systems International |
| Alight Inc |
CSG Systems and Alight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSG Systems and Alight
The main advantage of trading using opposite CSG Systems and Alight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSG Systems position performs unexpectedly, Alight 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 Alight will offset losses from the drop in Alight's long position.| CSG Systems vs. Evertec | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Global Blue Group | CSG Systems vs. ExlService Holdings |
| Alight vs. Alkami Technology | Alight vs. E2open Parent Holdings | Alight vs. Clearwater Analytics Holdings | Alight vs. CCC Intelligent Solutions |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |