Correlation Between Freshworks and EverCommerce

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

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

Diversification Opportunities for Freshworks and EverCommerce

-0.08

Correlation Coefficient

Freshworks  EverCommerce

Good diversification

The 3 months correlation between Freshworks and EverCommerce is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Freshworks and EverCommerce in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EverCommerce and Freshworks 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 Freshworks are associated (or correlated) with EverCommerce. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EverCommerce has no effect on the direction of Freshworks i.e., Freshworks and EverCommerce go up and down completely randomly.

Pair Corralation between Freshworks and EverCommerce

Given the investment horizon of 90 days Freshworks is expected to under-perform the EverCommerce. But the stock apears to be less risky and, when comparing its historical volatility, Freshworks is 1.1 times less risky than EverCommerce. The stock trades about -0.1 of its potential returns per unit of risk. The EverCommerce is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  998.00  in EverCommerce on August 1, 2025 and sell it today you would earn a total of  171.00  from holding EverCommerce or generate 17.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Freshworks  vs.  EverCommerce

Freshworks

Risk-Adjusted Performance

Weakest

Over the last 90 days Freshworks has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

EverCommerce

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in EverCommerce are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, EverCommerce displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Freshworks and EverCommerce

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

The idea behind Freshworks and EverCommerce 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.