Correlation Between Consensus Cloud and Alight
Can any of the company-specific risk be diversified away by investing in both Consensus Cloud 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 Consensus Cloud and Alight into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Consensus Cloud Solutions and Alight Inc, you can compare the effects of market volatilities on Consensus Cloud 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 Consensus Cloud with a short position of Alight. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consensus Cloud and Alight.
Diversification Opportunities for Consensus Cloud and Alight
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Consensus and Alight is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Consensus Cloud Solutions and Alight Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alight Inc and Consensus Cloud 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 Consensus Cloud Solutions 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 Consensus Cloud i.e., Consensus Cloud and Alight go up and down completely randomly.
Pair Corralation between Consensus Cloud and Alight
Given the investment horizon of 90 days Consensus Cloud Solutions is expected to under-perform the Alight. In addition to that, Consensus Cloud is 1.72 times more volatile than Alight Inc. It trades about -0.05 of its total potential returns per unit of risk. Alight Inc is currently generating about 0.05 per unit of volatility. If you would invest 540.00 in Alight Inc on April 20, 2025 and sell it today you would earn a total of 8.00 from holding Alight Inc or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Consensus Cloud Solutions vs. Alight Inc
Performance |
| Timeline |
| Consensus Cloud Solutions |
| Alight Inc |
Consensus Cloud and Alight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Consensus Cloud and Alight
The main advantage of trading using opposite Consensus Cloud and Alight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consensus Cloud 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.| Consensus Cloud vs. Priority Technology Holdings | Consensus Cloud vs. CSG Systems International | Consensus Cloud vs. Evertec | Consensus Cloud vs. i3 Verticals |
| 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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