Correlation Between LiveVox Holdings and CSG Systems

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

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

Diversification Opportunities for LiveVox Holdings and CSG Systems

-0.09

Correlation Coefficient

LiveVox Holdings  CSG Systems

Good diversification

The 3 months correlation between LiveVox and CSG is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding LiveVox Holdings 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 LiveVox Holdings 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 LiveVox Holdings 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 LiveVox Holdings i.e., LiveVox Holdings and CSG Systems go up and down completely randomly.

Pair Corralation between LiveVox Holdings and CSG Systems

If you would invest  4,762  in CSG Systems International on August 30, 2024 and sell it today you would earn a total of  697.00  from holding CSG Systems International or generate 14.64% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

LiveVox Holdings  vs.  CSG Systems International

LiveVox Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LiveVox Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, LiveVox Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

CSG Systems International

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CSG Systems International are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, CSG Systems unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with LiveVox Holdings and CSG Systems

The main advantage of trading using opposite LiveVox Holdings and CSG Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LiveVox Holdings 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.

The idea behind LiveVox Holdings and CSG Systems International 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.