Correlation Between Workiva and CiT

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

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

Diversification Opportunities for Workiva and CiT

0.0

Correlation Coefficient

Workiva  CiT

Pay attention - limited upside

The 3 months correlation between Workiva and CiT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Workiva and CiT Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CiT Inc and Workiva 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 Workiva are associated (or correlated) with CiT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CiT Inc has no effect on the direction of Workiva i.e., Workiva and CiT go up and down completely randomly.

Pair Corralation between Workiva and CiT

If you would invest (100.00) in Workiva on August 26, 2025 and sell it today you would earn a total of  100.00  from holding Workiva or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Workiva  vs.  CiT Inc

Workiva

Risk-Adjusted Performance

Fair

Over the last 90 days Workiva has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, Workiva is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

CiT Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CiT Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Workiva and CiT

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

The idea behind Workiva and CiT Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.