Correlation Between CXApp and Bullfrog

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

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

Diversification Opportunities for CXApp and Bullfrog

0.37

Correlation Coefficient

CXApp  Bullfrog

Weak diversification

The 3 months correlation between CXApp and Bullfrog is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Bullfrog AI Holdings, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bullfrog AI Holdings, and CXApp 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 CXApp Inc are associated (or correlated) with Bullfrog. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bullfrog AI Holdings, has no effect on the direction of CXApp i.e., CXApp and Bullfrog go up and down completely randomly.

Pair Corralation between CXApp and Bullfrog

Given the investment horizon of 90 days CXApp Inc is expected to generate 1.45 times more return on investment than Bullfrog. However, CXApp is 1.45 times more volatile than Bullfrog AI Holdings,. It trades about 0.16 of its potential returns per unit of risk. Bullfrog AI Holdings, is currently generating about 0.06 per unit of risk. If you would invest  159.00  in CXApp Inc on September 28, 2024 and sell it today you would earn a total of  45.00  from holding CXApp Inc or generate 28.3% return on investment over 90 days.

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

CXApp Inc  vs.  Bullfrog AI Holdings,

CXApp Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, CXApp demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Bullfrog AI Holdings,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bullfrog AI Holdings, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with CXApp and Bullfrog

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

The idea behind CXApp Inc and Bullfrog AI Holdings, 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.