Correlation Between Bill and MondayCom

Can any of the company-specific risk be diversified away by investing in both Bill 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 Bill and MondayCom into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bill Com Holdings and MondayCom, you can compare the effects of market volatilities on Bill 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 Bill with a short position of MondayCom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bill and MondayCom.

Diversification Opportunities for Bill and MondayCom

-0.52

Correlation Coefficient

Bill  MondayCom

Excellent diversification

The 3 months correlation between Bill and MondayCom is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Bill Com Holdings and MondayCom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MondayCom and Bill 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 Bill Com Holdings 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 Bill i.e., Bill and MondayCom go up and down completely randomly.

Pair Corralation between Bill and MondayCom

Given the investment horizon of 90 days Bill Com Holdings is expected to under-perform the MondayCom. In addition to that, Bill is 1.12 times more volatile than MondayCom. It trades about -0.15 of its total potential returns per unit of risk. MondayCom is currently generating about 0.05 per unit of volatility. If you would invest  23,529  in MondayCom on December 29, 2024 and sell it today you would earn a total of  2,039  from holding MondayCom or generate 8.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bill Com Holdings  vs.  MondayCom

Bill Com Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bill Com Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's essential indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

MondayCom

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in MondayCom are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting fundamental indicators, MondayCom showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bill and MondayCom

The main advantage of trading using opposite Bill and MondayCom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bill 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.

The idea behind Bill Com Holdings and MondayCom pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.