Correlation Between Expensify and DatChat

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

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

Diversification Opportunities for Expensify and DatChat

-0.43

Correlation Coefficient

Expensify  DatChat

Very good diversification

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

Pair Corralation between Expensify and DatChat

Given the investment horizon of 90 days Expensify is expected to generate 7.67 times less return on investment than DatChat. But when comparing it to its historical volatility, Expensify is 3.82 times less risky than DatChat. It trades about 0.02 of its potential returns per unit of risk. DatChat is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  362.00  in DatChat on April 25, 2025 and sell it today you would lose (97.00) from holding DatChat or give up 26.8% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Expensify  vs.  DatChat

Expensify

Risk-Adjusted Performance

Very Weak

Over the last 90 days Expensify has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

DatChat

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DatChat are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, DatChat may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Expensify and DatChat

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

The idea behind Expensify and DatChat 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.