Correlation Between Braze and Clear Secure
Can any of the company-specific risk be diversified away by investing in both Braze and Clear Secure 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 Braze and Clear Secure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Braze Inc and Clear Secure, you can compare the effects of market volatilities on Braze and Clear Secure 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 Braze with a short position of Clear Secure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Braze and Clear Secure.
Diversification Opportunities for Braze and Clear Secure
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Braze and Clear is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Braze Inc and Clear Secure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clear Secure and Braze 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 Braze Inc are associated (or correlated) with Clear Secure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clear Secure has no effect on the direction of Braze i.e., Braze and Clear Secure go up and down completely randomly.
Pair Corralation between Braze and Clear Secure
Given the investment horizon of 90 days Braze Inc is expected to generate 0.4 times more return on investment than Clear Secure. However, Braze Inc is 2.5 times less risky than Clear Secure. It trades about 0.44 of its potential returns per unit of risk. Clear Secure is currently generating about -0.19 per unit of risk. If you would invest 3,005 in Braze Inc on August 24, 2024 and sell it today you would earn a total of 793.00 from holding Braze Inc or generate 26.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Braze Inc vs. Clear Secure
Performance |
| Timeline |
| Braze Inc |
| Clear Secure |
Braze and Clear Secure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Braze and Clear Secure
The main advantage of trading using opposite Braze and Clear Secure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Braze position performs unexpectedly, Clear Secure 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 Clear Secure will offset losses from the drop in Clear Secure's long position.The idea behind Braze Inc and Clear Secure 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.| Clear Secure vs. Braze Inc | Clear Secure vs. Enfusion | Clear Secure vs. Freshworks | Clear Secure vs. Clearwater Analytics Holdings |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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