Correlation Between Expensify and Agora
Can any of the company-specific risk be diversified away by investing in both Expensify and Agora 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 Expensify and Agora into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Agora Inc, you can compare the effects of market volatilities on Expensify and Agora 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 Expensify with a short position of Agora. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Agora.
Diversification Opportunities for Expensify and Agora
Very weak diversification
The 3 months correlation between Expensify and Agora is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Agora Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agora Inc and Expensify 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 Expensify are associated (or correlated) with Agora. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agora Inc has no effect on the direction of Expensify i.e., Expensify and Agora go up and down completely randomly.
Pair Corralation between Expensify and Agora
Given the investment horizon of 90 days Expensify is expected to under-perform the Agora. But the stock apears to be less risky and, when comparing its historical volatility, Expensify is 1.1 times less risky than Agora. The stock trades about -0.01 of its potential returns per unit of risk. The Agora Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Agora Inc on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Agora Inc or generate 38.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expensify vs. Agora Inc
Performance |
| Timeline |
| Expensify |
| Agora Inc |
Expensify and Agora Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and Agora
The main advantage of trading using opposite Expensify and Agora positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Agora 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 Agora will offset losses from the drop in Agora's long position.| 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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