Correlation Between Expensify and Sprinklr

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

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

Diversification Opportunities for Expensify and Sprinklr

0.33

Correlation Coefficient

Expensify  Sprinklr

Weak diversification

The 3 months correlation between Expensify and Sprinklr is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Sprinklr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprinklr 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 Sprinklr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprinklr has no effect on the direction of Expensify i.e., Expensify and Sprinklr go up and down completely randomly.

Pair Corralation between Expensify and Sprinklr

Given the investment horizon of 90 days Expensify is expected to under-perform the Sprinklr. In addition to that, Expensify is 1.45 times more volatile than Sprinklr. It trades about -0.02 of its total potential returns per unit of risk. Sprinklr is currently generating about 0.01 per unit of volatility. If you would invest  850.00  in Sprinklr on December 30, 2024 and sell it today you would lose (7.00) from holding Sprinklr or give up 0.82% 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.  Sprinklr

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.

Sprinklr

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sprinklr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Sprinklr is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Expensify and Sprinklr

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

The idea behind Expensify and Sprinklr 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.