Correlation Between Enfusion and Expensify
Can any of the company-specific risk be diversified away by investing in both Enfusion 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 Enfusion and Expensify into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and Expensify, you can compare the effects of market volatilities on Enfusion 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 Enfusion with a short position of Expensify. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Expensify.
Diversification Opportunities for Enfusion and Expensify
Poor diversification
The 3 months correlation between Enfusion and Expensify is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify and Enfusion 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 Enfusion 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 Enfusion i.e., Enfusion and Expensify go up and down completely randomly.
Pair Corralation between Enfusion and Expensify
Given the investment horizon of 90 days Enfusion is expected to under-perform the Expensify. But the stock apears to be less risky and, when comparing its historical volatility, Enfusion is 5.47 times less risky than Expensify. The stock trades about -0.06 of its potential returns per unit of risk. The Expensify is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 340.00 in Expensify on November 18, 2024 and sell it today you would earn a total of 44.00 from holding Expensify or generate 12.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enfusion vs. Expensify
Performance |
| Timeline |
| Enfusion |
| Expensify |
Enfusion and Expensify Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and Expensify
The main advantage of trading using opposite Enfusion and Expensify positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion 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.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze Inc |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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