Correlation Between CONX Corp and 10X Capital

Can any of the company-specific risk be diversified away by investing in both CONX Corp and 10X Capital 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 CONX Corp and 10X Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CONX Corp and 10X Capital Venture, you can compare the effects of market volatilities on CONX Corp and 10X Capital 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 CONX Corp with a short position of 10X Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of CONX Corp and 10X Capital.

Diversification Opportunities for CONX Corp and 10X Capital

0.0

Correlation Coefficient

CONX Corp  10X Capital

Pay attention - limited upside

The 3 months correlation between CONX and 10X is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CONX Corp and 10X Capital Venture in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 10X Capital Venture and CONX Corp 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 CONX Corp are associated (or correlated) with 10X Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 10X Capital Venture has no effect on the direction of CONX Corp i.e., CONX Corp and 10X Capital go up and down completely randomly.

Pair Corralation between CONX Corp and 10X Capital

Assuming the 90 days horizon CONX Corp is expected to generate 1.04 times less return on investment than 10X Capital. In addition to that, CONX Corp is 1.27 times more volatile than 10X Capital Venture. It trades about 0.02 of its total potential returns per unit of risk. 10X Capital Venture is currently generating about 0.03 per unit of volatility. If you would invest  8.43  in 10X Capital Venture on October 7, 2024 and sell it today you would lose (0.94) from holding 10X Capital Venture or give up 11.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	86.55%
Values	Daily Returns

CONX Corp  vs.  10X Capital Venture

CONX Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

10X Capital Venture

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days 10X Capital Venture has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, 10X Capital is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with CONX Corp and 10X Capital

The main advantage of trading using opposite CONX Corp and 10X Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CONX Corp position performs unexpectedly, 10X Capital 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 10X Capital will offset losses from the drop in 10X Capital's long position.

The idea behind CONX Corp and 10X Capital Venture 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.