Correlation Between Consensus Cloud and ExlService Holdings

Can any of the company-specific risk be diversified away by investing in both Consensus Cloud and ExlService Holdings 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 ExlService Holdings 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 ExlService Holdings, you can compare the effects of market volatilities on Consensus Cloud and ExlService Holdings 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 ExlService Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Consensus Cloud and ExlService Holdings.

Diversification Opportunities for Consensus Cloud and ExlService Holdings

0.34

Correlation Coefficient

Consensus Cloud  ExlService Holdings

Weak diversification

The 3 months correlation between Consensus and ExlService is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Consensus Cloud Solutions and ExlService Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExlService Holdings 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 ExlService Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExlService Holdings has no effect on the direction of Consensus Cloud i.e., Consensus Cloud and ExlService Holdings go up and down completely randomly.

Pair Corralation between Consensus Cloud and ExlService Holdings

Given the investment horizon of 90 days Consensus Cloud Solutions is expected to generate 1.27 times more return on investment than ExlService Holdings. However, Consensus Cloud is 1.27 times more volatile than ExlService Holdings. It trades about 0.08 of its potential returns per unit of risk. ExlService Holdings is currently generating about -0.02 per unit of risk. If you would invest  1,940  in Consensus Cloud Solutions on April 25, 2025 and sell it today you would earn a total of  219.00  from holding Consensus Cloud Solutions or generate 11.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Consensus Cloud Solutions  vs.  ExlService Holdings

Consensus Cloud Solutions

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Consensus Cloud Solutions are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Consensus Cloud demonstrated solid returns over the last few months and may actually be approaching a breakup point.

ExlService Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days ExlService Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, ExlService Holdings is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Consensus Cloud and ExlService Holdings

The main advantage of trading using opposite Consensus Cloud and ExlService Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Consensus Cloud position performs unexpectedly, ExlService Holdings 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 ExlService Holdings will offset losses from the drop in ExlService Holdings' long position.

The idea behind Consensus Cloud Solutions and ExlService Holdings 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.