Correlation Between Cvent Holding and Expensify

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

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

Diversification Opportunities for Cvent Holding and Expensify

0.29

Correlation Coefficient

Cvent Holding  Expensify

Modest diversification

The 3 months correlation between Cvent and Expensify is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cvent Holding Corp and Expensify in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expensify and Cvent Holding 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 Cvent Holding Corp are associated (or correlated) with Expensify. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expensify has no effect on the direction of Cvent Holding i.e., Cvent Holding and Expensify go up and down completely randomly.

Pair Corralation between Cvent Holding and Expensify

If you would invest  196.00  in Expensify on August 31, 2024 and sell it today you would earn a total of  131.00  from holding Expensify or generate 66.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	4.55%
Values	Daily Returns

Cvent Holding Corp  vs.  Expensify

Cvent Holding Corp

Risk-Adjusted Performance

0 of 100

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.

Expensify

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Expensify are ranked lower than 10 (%) 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.

Pair Trading with Cvent Holding and Expensify

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

The idea behind Cvent Holding Corp and Expensify 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .