Correlation Between Expensify and Braze

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

By analyzing existing cross correlation between Expensify and Braze Inc, you can compare the effects of market volatilities on Expensify and Braze 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 Braze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Braze.

Diversification Opportunities for Expensify and Braze

0.24

Correlation Coefficient

Expensify  Braze

Modest diversification

The 3 months correlation between Expensify and Braze is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Braze Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braze Inc 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 Braze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braze Inc has no effect on the direction of Expensify i.e., Expensify and Braze go up and down completely randomly.

Pair Corralation between Expensify and Braze

Given the investment horizon of 90 days Expensify is expected to generate 1.37 times more return on investment than Braze. However, Expensify is 1.37 times more volatile than Braze Inc. It trades about 0.0 of its potential returns per unit of risk. Braze Inc is currently generating about -0.06 per unit of risk. If you would invest  348.00  in Expensify on December 29, 2024 and sell it today you would lose (17.00) from holding Expensify or give up 4.89% of portfolio value over 90 days.

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

Expensify  vs.  Braze Inc

Expensify

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expensify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Expensify is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Braze Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Braze Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Expensify and Braze

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

The idea behind Expensify and Braze Inc 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.