Correlation Between Expensify and Cvent Holding

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

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

Diversification Opportunities for Expensify and Cvent Holding

0.0

Correlation Coefficient

Expensify  Cvent Holding

Pay attention - limited upside

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

Pair Corralation between Expensify and Cvent Holding

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	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Expensify  vs.  Cvent Holding Corp

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.

Cvent Holding Corp

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Expensify and Cvent Holding

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

The idea behind Expensify and Cvent Holding 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.

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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.