Correlation Between Citigroup and Consensus Cloud
Can any of the company-specific risk be diversified away by investing in both Citigroup and Consensus Cloud 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 Citigroup and Consensus Cloud into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Consensus Cloud Solutions, you can compare the effects of market volatilities on Citigroup and Consensus Cloud 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 Citigroup with a short position of Consensus Cloud. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Consensus Cloud.
Diversification Opportunities for Citigroup and Consensus Cloud
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citigroup and Consensus is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Consensus Cloud Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consensus Cloud Solutions and Citigroup 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 Citigroup are associated (or correlated) with Consensus Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consensus Cloud Solutions has no effect on the direction of Citigroup i.e., Citigroup and Consensus Cloud go up and down completely randomly.
Pair Corralation between Citigroup and Consensus Cloud
Taking into account the 90-day investment horizon Citigroup is expected to generate 1.59 times less return on investment than Consensus Cloud. But when comparing it to its historical volatility, Citigroup is 1.74 times less risky than Consensus Cloud. It trades about 0.21 of its potential returns per unit of risk. Consensus Cloud Solutions is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,050 in Consensus Cloud Solutions on August 24, 2024 and sell it today you would earn a total of 325.00 from holding Consensus Cloud Solutions or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. Consensus Cloud Solutions
Performance |
| Timeline |
| Citigroup |
| Consensus Cloud Solutions |
Citigroup and Consensus Cloud Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Consensus Cloud
The main advantage of trading using opposite Citigroup and Consensus Cloud positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Consensus Cloud 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 Consensus Cloud will offset losses from the drop in Consensus Cloud's long position.| Citigroup vs. Wells Fargo | Citigroup vs. Toronto Dominion Bank | Citigroup vs. Royal Bank of | Citigroup vs. JPMorgan Chase Co |
| Consensus Cloud vs. Ziff Davis | Consensus Cloud vs. PC Connection | Consensus Cloud vs. N Able Inc | Consensus Cloud vs. Enfusion |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |