Correlation Between Consensus Cloud and Repay Holdings

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

Diversification Opportunities for Consensus Cloud and Repay Holdings

-0.49

Correlation Coefficient

Consensus Cloud  Repay Holdings

Very good diversification

The 3 months correlation between Consensus and Repay is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Consensus Cloud Solutions and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp 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 Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of Consensus Cloud i.e., Consensus Cloud and Repay Holdings go up and down completely randomly.

Pair Corralation between Consensus Cloud and Repay Holdings

Given the investment horizon of 90 days Consensus Cloud is expected to generate 1.43 times less return on investment than Repay Holdings. In addition to that, Consensus Cloud is 1.75 times more volatile than Repay Holdings Corp. It trades about 0.01 of its total potential returns per unit of risk. Repay Holdings Corp is currently generating about 0.02 per unit of volatility. If you would invest  758.00  in Repay Holdings Corp on July 8, 2024 and sell it today you would earn a total of  28.00  from holding Repay Holdings Corp or generate 3.69% return on investment over 90 days.

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

Consensus Cloud Solutions  vs.  Repay Holdings Corp

Consensus Cloud Solutions

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Consensus Cloud Solutions are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, Consensus Cloud demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Repay Holdings Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Repay Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Consensus Cloud and Repay Holdings

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

The idea behind Consensus Cloud Solutions and Repay Holdings Corp 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.