Correlation Between Expensify and Bumble
Can any of the company-specific risk be diversified away by investing in both Expensify and Bumble 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 Bumble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Bumble Inc, you can compare the effects of market volatilities on Expensify and Bumble 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 Bumble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Bumble.
Diversification Opportunities for Expensify and Bumble
Very weak diversification
The 3 months correlation between Expensify and Bumble is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Bumble Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bumble 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 Bumble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bumble Inc has no effect on the direction of Expensify i.e., Expensify and Bumble go up and down completely randomly.
Pair Corralation between Expensify and Bumble
Given the investment horizon of 90 days Expensify is expected to generate 1.96 times less return on investment than Bumble. In addition to that, Expensify is 1.14 times more volatile than Bumble Inc. It trades about 0.05 of its total potential returns per unit of risk. Bumble Inc is currently generating about 0.11 per unit of volatility. If you would invest 797.00 in Bumble Inc on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Bumble Inc or generate 5.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Expensify vs. Bumble Inc
Performance |
| Timeline |
| Expensify |
| Bumble Inc |
Expensify and Bumble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and Bumble
The main advantage of trading using opposite Expensify and Bumble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Bumble 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 Bumble will offset losses from the drop in Bumble'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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