Correlation Between Clearwater Analytics and Expensify
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics and Expensify 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 Clearwater Analytics and Expensify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and Expensify, you can compare the effects of market volatilities on Clearwater Analytics and Expensify 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 Clearwater Analytics with a short position of Expensify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and Expensify.
Diversification Opportunities for Clearwater Analytics and Expensify
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Clearwater and Expensify is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify and Clearwater Analytics 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 Clearwater Analytics Holdings are associated (or correlated) with Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Clearwater Analytics i.e., Clearwater Analytics and Expensify go up and down completely randomly.
Pair Corralation between Clearwater Analytics and Expensify
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.39 times more return on investment than Expensify. However, Clearwater Analytics Holdings is 2.54 times less risky than Expensify. It trades about 0.06 of its potential returns per unit of risk. Expensify is currently generating about -0.01 per unit of risk. If you would invest 1,880 in Clearwater Analytics Holdings on August 23, 2024 and sell it today you would earn a total of 1,210 from holding Clearwater Analytics Holdings or generate 64.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. Expensify
Performance |
| Timeline |
| Clearwater Analytics |
| Expensify |
Clearwater Analytics and Expensify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and Expensify
The main advantage of trading using opposite Clearwater Analytics and Expensify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics position performs unexpectedly, Expensify 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 Expensify will offset losses from the drop in Expensify's long position.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Envestnet |
| Expensify vs. Clearwater Analytics Holdings | Expensify vs. Sprinklr | Expensify vs. Alkami Technology | Expensify vs. Vertex |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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