Correlation Between Expensify and Treasure Global
Can any of the company-specific risk be diversified away by investing in both Expensify and Treasure Global 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 Treasure Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Treasure Global, you can compare the effects of market volatilities on Expensify and Treasure Global 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 Treasure Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Treasure Global.
Diversification Opportunities for Expensify and Treasure Global
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Expensify and Treasure is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Treasure Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Treasure Global 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 Treasure Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Treasure Global has no effect on the direction of Expensify i.e., Expensify and Treasure Global go up and down completely randomly.
Pair Corralation between Expensify and Treasure Global
Given the investment horizon of 90 days Expensify is expected to generate 0.62 times more return on investment than Treasure Global. However, Expensify is 1.61 times less risky than Treasure Global. It trades about 0.42 of its potential returns per unit of risk. Treasure Global is currently generating about -0.15 per unit of risk. If you would invest 184.00 in Expensify on August 29, 2024 and sell it today you would earn a total of 143.00 from holding Expensify or generate 77.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expensify vs. Treasure Global
Performance |
| Timeline |
| Expensify |
| Treasure Global |
Expensify and Treasure Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and Treasure Global
The main advantage of trading using opposite Expensify and Treasure Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Treasure Global 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 Treasure Global will offset losses from the drop in Treasure Global's long position.| Expensify vs. Clearwater Analytics Holdings | Expensify vs. Sprinklr | Expensify vs. Alkami Technology | Expensify vs. Vertex |
| Treasure Global vs. Shotspotter | Treasure Global vs. Enfusion | Treasure Global vs. Cleartronic | Treasure Global vs. Lytus Technologies Holdings |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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