Correlation Between Borqs Technologies and CXApp

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

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

Diversification Opportunities for Borqs Technologies and CXApp

-0.5

Correlation Coefficient

Borqs Technologies  CXApp

Very good diversification

The 3 months correlation between Borqs and CXApp is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Borqs Technologies and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Borqs Technologies 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 Borqs Technologies 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 Borqs Technologies i.e., Borqs Technologies and CXApp go up and down completely randomly.

Pair Corralation between Borqs Technologies and CXApp

If you would invest  168.00  in CXApp Inc on October 7, 2024 and sell it today you would earn a total of  57.00  from holding CXApp Inc or generate 33.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Borqs Technologies  vs.  CXApp Inc

Borqs Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Borqs Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Borqs Technologies is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

CXApp Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, CXApp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Borqs Technologies and CXApp

The main advantage of trading using opposite Borqs Technologies and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borqs Technologies 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 Borqs Technologies 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.

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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.