Correlation Between ADEIA P and CXApp

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

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

Diversification Opportunities for ADEIA P and CXApp

-0.41

Correlation Coefficient

ADEIA P  CXApp

Very good diversification

The 3 months correlation between ADEIA and CXApp is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding ADEIA P and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and ADEIA P 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 ADEIA P are associated (or correlated) with CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of ADEIA P i.e., ADEIA P and CXApp go up and down completely randomly.

Pair Corralation between ADEIA P and CXApp

Given the investment horizon of 90 days ADEIA P is expected to generate 0.46 times more return on investment than CXApp. However, ADEIA P is 2.17 times less risky than CXApp. It trades about 0.24 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.05 per unit of risk. If you would invest  1,205  in ADEIA P on September 22, 2024 and sell it today you would earn a total of  161.00  from holding ADEIA P or generate 13.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

ADEIA P  vs.  CXApp Inc

ADEIA P

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ADEIA P are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, ADEIA P sustained solid returns over the last few months and may actually be approaching a breakup point.

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with ADEIA P and CXApp

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

The idea behind ADEIA P and CXApp 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.