Correlation Between Expensify and MondayCom
Can any of the company-specific risk be diversified away by investing in both Expensify and MondayCom 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 MondayCom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and MondayCom, you can compare the effects of market volatilities on Expensify and MondayCom 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 MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and MondayCom.
Diversification Opportunities for Expensify and MondayCom
Excellent diversification
The 3 months correlation between Expensify and MondayCom is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom 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 MondayCom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MondayCom has no effect on the direction of Expensify i.e., Expensify and MondayCom go up and down completely randomly.
Pair Corralation between Expensify and MondayCom
Given the investment horizon of 90 days Expensify is expected to under-perform the MondayCom. In addition to that, Expensify is 1.68 times more volatile than MondayCom. It trades about -0.01 of its total potential returns per unit of risk. MondayCom is currently generating about 0.05 per unit of volatility. If you would invest 14,548 in MondayCom on November 2, 2024 and sell it today you would earn a total of 11,063 from holding MondayCom or generate 76.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expensify vs. MondayCom
Performance |
| Timeline |
| Expensify |
| MondayCom |
Expensify and MondayCom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and MondayCom
The main advantage of trading using opposite Expensify and MondayCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, MondayCom 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 MondayCom will offset losses from the drop in MondayCom's long position.| Expensify vs. Clearwater Analytics Holdings | Expensify vs. Sprinklr | Expensify vs. Alkami Technology | Expensify vs. Vertex |
| MondayCom vs. Datadog | MondayCom vs. Gitlab Inc | MondayCom vs. ZoomInfo Technologies | MondayCom vs. HubSpot |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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