Correlation Between Clear Secure and Braze

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

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

Diversification Opportunities for Clear Secure and Braze

-0.67

Correlation Coefficient

Clear Secure  Braze

Excellent diversification

The 3 months correlation between Clear and Braze is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Clear Secure and Braze Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braze Inc and Clear Secure 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 Clear Secure 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 Clear Secure i.e., Clear Secure and Braze go up and down completely randomly.

Pair Corralation between Clear Secure and Braze

Considering the 90-day investment horizon Clear Secure is expected to generate 3.18 times less return on investment than Braze. In addition to that, Clear Secure is 1.04 times more volatile than Braze Inc. It trades about 0.01 of its total potential returns per unit of risk. Braze Inc is currently generating about 0.04 per unit of volatility. If you would invest  2,824  in Braze Inc on September 5, 2024 and sell it today you would earn a total of  1,133  from holding Braze Inc or generate 40.12% return on investment over 90 days.

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

Clear Secure  vs.  Braze Inc

Clear Secure

Risk-Adjusted Performance

0 of 100

Very Weak

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

Braze Inc

Risk-Adjusted Performance

0 of 100

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 Clear Secure and Braze

The main advantage of trading using opposite Clear Secure and Braze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clear Secure 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 Clear Secure 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.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.