Correlation Between Repay Holdings and EngageSmart LLC

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

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

Diversification Opportunities for Repay Holdings and EngageSmart LLC

0.0

Correlation Coefficient

Repay Holdings  EngageSmart LLC

Pay attention - limited upside

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

Pair Corralation between Repay Holdings and EngageSmart LLC

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

Repay Holdings Corp  vs.  EngageSmart LLC

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.

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.

Pair Trading with Repay Holdings and EngageSmart LLC

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

The idea behind Repay Holdings Corp and EngageSmart LLC 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.