Correlation Between Expensify and Blend Labs
Can any of the company-specific risk be diversified away by investing in both Expensify and Blend Labs 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 Blend Labs into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Blend Labs, you can compare the effects of market volatilities on Expensify and Blend Labs 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 Blend Labs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Blend Labs.
Diversification Opportunities for Expensify and Blend Labs
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Expensify and Blend is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Blend Labs in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blend Labs 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 Blend Labs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blend Labs has no effect on the direction of Expensify i.e., Expensify and Blend Labs go up and down completely randomly.
Pair Corralation between Expensify and Blend Labs
Given the investment horizon of 90 days Expensify is expected to under-perform the Blend Labs. But the stock apears to be less risky and, when comparing its historical volatility, Expensify is 1.34 times less risky than Blend Labs. The stock trades about -0.05 of its potential returns per unit of risk. The Blend Labs is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 370.00 in Blend Labs on June 4, 2025 and sell it today you would lose (8.00) from holding Blend Labs or give up 2.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expensify vs. Blend Labs
Performance |
| Timeline |
| Expensify |
| Blend Labs |
Expensify and Blend Labs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and Blend Labs
The main advantage of trading using opposite Expensify and Blend Labs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Blend Labs 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 Blend Labs will offset losses from the drop in Blend Labs' long position.| Expensify vs. Braze Inc | Expensify vs. Freshworks | Expensify vs. Clearwater Analytics Holdings | Expensify vs. CS Disco LLC |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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