Correlation Between Expensify and Sprinklr
Can any of the company-specific risk be diversified away by investing in both Expensify and Sprinklr 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 Sprinklr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Sprinklr, you can compare the effects of market volatilities on Expensify and Sprinklr 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 Sprinklr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Sprinklr.
Diversification Opportunities for Expensify and Sprinklr
Almost no diversification
The 3 months correlation between Expensify and Sprinklr is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Sprinklr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprinklr 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 Sprinklr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprinklr has no effect on the direction of Expensify i.e., Expensify and Sprinklr go up and down completely randomly.
Pair Corralation between Expensify and Sprinklr
Given the investment horizon of 90 days Expensify is expected to generate 1.84 times more return on investment than Sprinklr. However, Expensify is 1.84 times more volatile than Sprinklr. It trades about 0.19 of its potential returns per unit of risk. Sprinklr is currently generating about 0.12 per unit of risk. If you would invest 191.00 in Expensify on October 31, 2024 and sell it today you would earn a total of 163.00 from holding Expensify or generate 85.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expensify vs. Sprinklr
Performance |
| Timeline |
| Expensify |
| Sprinklr |
Expensify and Sprinklr Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and Sprinklr
The main advantage of trading using opposite Expensify and Sprinklr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Sprinklr 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 Sprinklr will offset losses from the drop in Sprinklr's long position.| Expensify vs. Clearwater Analytics Holdings | Expensify vs. Sprinklr | Expensify vs. Alkami Technology | Expensify vs. Vertex |
| Sprinklr vs. Expensify | Sprinklr vs. Clearwater Analytics Holdings | Sprinklr vs. Alkami Technology | Sprinklr 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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