Correlation Between CXApp and Freight Technologies

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

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

Diversification Opportunities for CXApp and Freight Technologies

0.59

Correlation Coefficient

CXApp  Freight Technologies

Very weak diversification

The 3 months correlation between CXApp and Freight is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Freight Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freight Technologies 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 Freight Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freight Technologies has no effect on the direction of CXApp i.e., CXApp and Freight Technologies go up and down completely randomly.

Pair Corralation between CXApp and Freight Technologies

Given the investment horizon of 90 days CXApp Inc is expected to under-perform the Freight Technologies. But the stock apears to be less risky and, when comparing its historical volatility, CXApp Inc is 1.86 times less risky than Freight Technologies. The stock trades about -0.25 of its potential returns per unit of risk. The Freight Technologies is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  193.00  in Freight Technologies on December 28, 2024 and sell it today you would lose (94.38) from holding Freight Technologies or give up 48.9% of portfolio value over 90 days.

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

CXApp Inc  vs.  Freight Technologies

CXApp Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Freight Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Freight Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with CXApp and Freight Technologies

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

The idea behind CXApp Inc and Freight Technologies 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.