Correlation Between Expensify and Grindr
Can any of the company-specific risk be diversified away by investing in both Expensify and Grindr 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 Grindr into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Grindr Inc, you can compare the effects of market volatilities on Expensify and Grindr 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 Grindr. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Grindr.
Diversification Opportunities for Expensify and Grindr
Very poor diversification
The 3 months correlation between Expensify and Grindr is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Grindr Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grindr 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 Grindr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grindr Inc has no effect on the direction of Expensify i.e., Expensify and Grindr go up and down completely randomly.
Pair Corralation between Expensify and Grindr
Given the investment horizon of 90 days Expensify is expected to under-perform the Grindr. In addition to that, Expensify is 1.98 times more volatile than Grindr Inc. It trades about 0.0 of its total potential returns per unit of risk. Grindr Inc is currently generating about 0.1 per unit of volatility. If you would invest 510.00 in Grindr Inc on September 26, 2024 and sell it today you would earn a total of 1,262 from holding Grindr Inc or generate 247.45% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Expensify vs. Grindr Inc
Performance |
Timeline |
Expensify |
Grindr Inc |
Expensify and Grindr Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Expensify and Grindr
The main advantage of trading using opposite Expensify and Grindr positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Grindr 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 Grindr will offset losses from the drop in Grindr's long position.Expensify vs. Dubber Limited | Expensify vs. Advanced Health Intelligence | Expensify vs. Danavation Technologies Corp | Expensify vs. BASE Inc |
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 Stocks Directory module to find actively traded stocks across global markets.
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