Correlation Between Expensify and Toast

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

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

Diversification Opportunities for Expensify and Toast

0.71

Correlation Coefficient

Expensify  Toast

Poor diversification

The 3 months correlation between Expensify and Toast is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Toast Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Toast Inc 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 Toast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Toast Inc has no effect on the direction of Expensify i.e., Expensify and Toast go up and down completely randomly.

Pair Corralation between Expensify and Toast

Given the investment horizon of 90 days Expensify is expected to under-perform the Toast. In addition to that, Expensify is 1.34 times more volatile than Toast Inc. It trades about -0.16 of its total potential returns per unit of risk. Toast Inc is currently generating about -0.16 per unit of volatility. If you would invest  4,763  in Toast Inc on July 22, 2025 and sell it today you would lose (1,013) from holding Toast Inc or give up 21.27% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Expensify  vs.  Toast Inc

Expensify

Risk-Adjusted Performance

Weakest

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

Toast Inc

Risk-Adjusted Performance

Weakest

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

Pair Trading with Expensify and Toast

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

The idea behind Expensify and Toast Inc 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.

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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.