Correlation Between Verint Systems and CSG Systems
Can any of the company-specific risk be diversified away by investing in both Verint Systems and CSG Systems 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 Verint Systems and CSG Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Verint Systems and CSG Systems International, you can compare the effects of market volatilities on Verint Systems and CSG Systems 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 Verint Systems with a short position of CSG Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of Verint Systems and CSG Systems.
Diversification Opportunities for Verint Systems and CSG Systems
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Verint and CSG is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Verint Systems and CSG Systems International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSG Systems International and Verint 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 Verint Systems are associated (or correlated) with CSG Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSG Systems International has no effect on the direction of Verint Systems i.e., Verint Systems and CSG Systems go up and down completely randomly.
Pair Corralation between Verint Systems and CSG Systems
Given the investment horizon of 90 days Verint Systems is expected to generate 2.2 times more return on investment than CSG Systems. However, Verint Systems is 2.2 times more volatile than CSG Systems International. It trades about 0.12 of its potential returns per unit of risk. CSG Systems International is currently generating about 0.05 per unit of risk. If you would invest 1,599 in Verint Systems on April 17, 2025 and sell it today you would earn a total of 408.00 from holding Verint Systems or generate 25.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Verint Systems vs. CSG Systems International
Performance |
| Timeline |
| Verint Systems |
| CSG Systems International |
Verint Systems and CSG Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Verint Systems and CSG Systems
The main advantage of trading using opposite Verint Systems and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Verint Systems position performs unexpectedly, CSG Systems 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 CSG Systems will offset losses from the drop in CSG Systems' long position.| Verint Systems vs. CSG Systems International | Verint Systems vs. Evertec | Verint Systems vs. Cognyte Software | Verint Systems vs. Varonis Systems |
| CSG Systems vs. Evertec | CSG Systems vs. Consensus Cloud Solutions | CSG Systems vs. Global Blue Group | CSG Systems vs. ExlService Holdings |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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