Correlation Between Semrush Holdings and Braze

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

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

Diversification Opportunities for Semrush Holdings and Braze

0.8

Correlation Coefficient

Semrush Holdings  Braze

Very poor diversification

The 3 months correlation between Semrush and Braze is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Semrush Holdings and Braze Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Braze Inc and Semrush Holdings 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 Semrush Holdings are associated (or correlated) with Braze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Braze Inc has no effect on the direction of Semrush Holdings i.e., Semrush Holdings and Braze go up and down completely randomly.

Pair Corralation between Semrush Holdings and Braze

Given the investment horizon of 90 days Semrush Holdings is expected to under-perform the Braze. But the stock apears to be less risky and, when comparing its historical volatility, Semrush Holdings is 1.17 times less risky than Braze. The stock trades about -0.09 of its potential returns per unit of risk. The Braze Inc is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  3,143  in Braze Inc on May 6, 2025 and sell it today you would lose (523.00) from holding Braze Inc or give up 16.64% of portfolio value over 90 days.

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

Semrush Holdings  vs.  Braze Inc

Semrush Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Semrush Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Stock's primary indicators remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Braze Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Braze 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 rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Semrush Holdings and Braze

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

The idea behind Semrush Holdings and Braze 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.