Correlation Between CXApp and NCino

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

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

Diversification Opportunities for CXApp and NCino

-0.64

Correlation Coefficient

CXApp  NCino

Excellent diversification

The 3 months correlation between CXApp and NCino is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and nCino Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on nCino Inc 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 NCino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of nCino Inc has no effect on the direction of CXApp i.e., CXApp and NCino go up and down completely randomly.

Pair Corralation between CXApp and NCino

Given the investment horizon of 90 days CXApp Inc is expected to under-perform the NCino. In addition to that, CXApp is 2.49 times more volatile than nCino Inc. It trades about -0.05 of its total potential returns per unit of risk. nCino Inc is currently generating about 0.28 per unit of volatility. If you would invest  3,023  in nCino Inc on September 5, 2024 and sell it today you would earn a total of  1,127  from holding nCino Inc or generate 37.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

CXApp Inc  vs.  nCino Inc

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. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

nCino Inc

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in nCino Inc are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, NCino displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and NCino

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

The idea behind CXApp Inc and nCino 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.