Correlation Between Expensify and Semrush Holdings

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

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

Diversification Opportunities for Expensify and Semrush Holdings

0.15

Correlation Coefficient

Expensify  Semrush Holdings

Average diversification

The 3 months correlation between Expensify and Semrush is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Semrush Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semrush Holdings 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 Semrush Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semrush Holdings has no effect on the direction of Expensify i.e., Expensify and Semrush Holdings go up and down completely randomly.

Pair Corralation between Expensify and Semrush Holdings

Given the investment horizon of 90 days Expensify is expected to under-perform the Semrush Holdings. In addition to that, Expensify is 1.84 times more volatile than Semrush Holdings. It trades about -0.01 of its total potential returns per unit of risk. Semrush Holdings is currently generating about 0.05 per unit of volatility. If you would invest  845.00  in Semrush Holdings on September 3, 2024 and sell it today you would earn a total of  515.00  from holding Semrush Holdings or generate 60.95% return on investment over 90 days.

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

Expensify  vs.  Semrush Holdings

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.

Semrush Holdings

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Semrush Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable primary indicators, Semrush Holdings is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Expensify and Semrush Holdings

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

The idea behind Expensify and Semrush Holdings 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.