Correlation Between Expensify and Freshworks
Can any of the company-specific risk be diversified away by investing in both Expensify and Freshworks 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 Freshworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expensify and Freshworks, you can compare the effects of market volatilities on Expensify and Freshworks 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 Freshworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expensify and Freshworks.
Diversification Opportunities for Expensify and Freshworks
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Expensify and Freshworks is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Freshworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freshworks 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 Freshworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freshworks has no effect on the direction of Expensify i.e., Expensify and Freshworks go up and down completely randomly.
Pair Corralation between Expensify and Freshworks
Given the investment horizon of 90 days Expensify is expected to under-perform the Freshworks. In addition to that, Expensify is 1.48 times more volatile than Freshworks. It trades about -0.07 of its total potential returns per unit of risk. Freshworks is currently generating about -0.1 per unit of volatility. If you would invest 1,566 in Freshworks on June 12, 2025 and sell it today you would lose (238.00) from holding Freshworks or give up 15.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expensify vs. Freshworks
Performance |
| Timeline |
| Expensify |
| Freshworks |
Expensify and Freshworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expensify and Freshworks
The main advantage of trading using opposite Expensify and Freshworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expensify position performs unexpectedly, Freshworks 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 Freshworks will offset losses from the drop in Freshworks' 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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