Correlation Between Enfusion and Alkami Technology

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

By analyzing existing cross correlation between Enfusion and Alkami Technology, you can compare the effects of market volatilities on Enfusion and Alkami Technology 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 Enfusion with a short position of Alkami Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and Alkami Technology.

Diversification Opportunities for Enfusion and Alkami Technology

0.43

Correlation Coefficient

Enfusion  Alkami Technology

Very weak diversification

The 3 months correlation between Enfusion and Alkami is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and Alkami Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkami Technology and Enfusion 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 Enfusion are associated (or correlated) with Alkami Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkami Technology has no effect on the direction of Enfusion i.e., Enfusion and Alkami Technology go up and down completely randomly.

Pair Corralation between Enfusion and Alkami Technology

If you would invest  1,076  in Enfusion on May 5, 2025 and sell it today you would earn a total of  0.00  from holding Enfusion or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.59%
Values	Daily Returns

Enfusion  vs.  Alkami Technology

Enfusion

Risk-Adjusted Performance

Very Weak

Over the last 90 days Enfusion has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy technical and fundamental indicators, Enfusion is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Alkami Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alkami Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward-looking signals remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Enfusion and Alkami Technology

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

The idea behind Enfusion and Alkami Technology 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.