Correlation Between Expensify and Weave Communications

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

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

Diversification Opportunities for Expensify and Weave Communications

0.53

Correlation Coefficient

Expensify  Weave Communications

Very weak diversification

The 3 months correlation between Expensify and Weave is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Expensify and Weave Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weave Communications 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 Weave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weave Communications has no effect on the direction of Expensify i.e., Expensify and Weave Communications go up and down completely randomly.

Pair Corralation between Expensify and Weave Communications

Given the investment horizon of 90 days Expensify is expected to generate 1.28 times more return on investment than Weave Communications. However, Expensify is 1.28 times more volatile than Weave Communications. It trades about -0.12 of its potential returns per unit of risk. Weave Communications is currently generating about -0.2 per unit of risk. If you would invest  292.00  in Expensify on May 4, 2025 and sell it today you would lose (94.00) from holding Expensify or give up 32.19% of portfolio value over 90 days.

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

Expensify  vs.  Weave Communications

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 unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Weave Communications

Risk-Adjusted Performance

Very Weak

Over the last 90 days Weave Communications 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 basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Expensify and Weave Communications

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

The idea behind Expensify and Weave Communications 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.