Correlation Between Expensify and MMTEC

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

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

Diversification Opportunities for Expensify and MMTEC

-0.89

Correlation Coefficient

Expensify  MMTEC

Pay attention - limited upside

The 3 months correlation between Expensify and MMTEC is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and MMTEC Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MMTEC 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 MMTEC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MMTEC Inc has no effect on the direction of Expensify i.e., Expensify and MMTEC go up and down completely randomly.

Pair Corralation between Expensify and MMTEC

Given the investment horizon of 90 days Expensify is expected to generate 0.59 times more return on investment than MMTEC. However, Expensify is 1.68 times less risky than MMTEC. It trades about 0.22 of its potential returns per unit of risk. MMTEC Inc is currently generating about -0.11 per unit of risk. If you would invest  184.00  in Expensify on October 15, 2024 and sell it today you would earn a total of  141.00  from holding Expensify or generate 76.63% return on investment over 90 days.

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

Expensify  vs.  MMTEC Inc

Expensify

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Expensify are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating technical and fundamental indicators, Expensify showed solid returns over the last few months and may actually be approaching a breakup point.

MMTEC Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MMTEC Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Expensify and MMTEC

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

The idea behind Expensify and MMTEC 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 Stocks Directory module to find actively traded stocks across global markets.