Correlation Between EngageSmart LLC and Repay Holdings

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

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

Diversification Opportunities for EngageSmart LLC and Repay Holdings

0.0

Correlation Coefficient

EngageSmart LLC  Repay Holdings

Pay attention - limited upside

The 3 months correlation between EngageSmart and Repay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EngageSmart LLC and Repay Holdings Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repay Holdings Corp and EngageSmart LLC 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 EngageSmart LLC are associated (or correlated) with Repay Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repay Holdings Corp has no effect on the direction of EngageSmart LLC i.e., EngageSmart LLC and Repay Holdings go up and down completely randomly.

Pair Corralation between EngageSmart LLC and Repay Holdings

If you would invest (100.00) in EngageSmart LLC on December 30, 2024 and sell it today you would earn a total of  100.00  from holding EngageSmart LLC or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

EngageSmart LLC  vs.  Repay Holdings Corp

EngageSmart LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days EngageSmart LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable primary indicators, EngageSmart LLC is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Repay Holdings Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Repay Holdings Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with EngageSmart LLC and Repay Holdings

The main advantage of trading using opposite EngageSmart LLC and Repay Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EngageSmart LLC position performs unexpectedly, Repay Holdings 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 Repay Holdings will offset losses from the drop in Repay Holdings' long position.

The idea behind EngageSmart LLC and Repay Holdings Corp 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.

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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.