Correlation Between Affirm Holdings and Endava
Can any of the company-specific risk be diversified away by investing in both Affirm Holdings and Endava 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 Affirm Holdings and Endava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Affirm Holdings and Endava, you can compare the effects of market volatilities on Affirm Holdings and Endava 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 Affirm Holdings with a short position of Endava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Affirm Holdings and Endava.
Diversification Opportunities for Affirm Holdings and Endava
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Affirm and Endava is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Affirm Holdings and Endava in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Endava and Affirm 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 Affirm Holdings are associated (or correlated) with Endava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Endava has no effect on the direction of Affirm Holdings i.e., Affirm Holdings and Endava go up and down completely randomly.
Pair Corralation between Affirm Holdings and Endava
Given the investment horizon of 90 days Affirm Holdings is expected to generate 0.87 times more return on investment than Endava. However, Affirm Holdings is 1.14 times less risky than Endava. It trades about 0.01 of its potential returns per unit of risk. Endava is currently generating about -0.13 per unit of risk. If you would invest 7,586 in Affirm Holdings on October 5, 2025 and sell it today you would lose (183.00) from holding Affirm Holdings or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Affirm Holdings vs. Endava
Performance |
| Timeline |
| Affirm Holdings |
Risk-Adjusted Performance
Weakest
Weak | Strong |
| Endava |
Affirm Holdings and Endava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Affirm Holdings and Endava
The main advantage of trading using opposite Affirm Holdings and Endava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Affirm Holdings position performs unexpectedly, Endava 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 Endava will offset losses from the drop in Endava's long position.| Affirm Holdings vs. Samsara | Affirm Holdings vs. VeriSign | Affirm Holdings vs. Toast Inc | Affirm Holdings vs. Check Point Software |
| Endava vs. Priority Technology Holdings | Endava vs. Consensus Cloud Solutions | Endava vs. OneSpan | Endava vs. CiT 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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