Correlation Between CXApp and Appswarm

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

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

Diversification Opportunities for CXApp and Appswarm

0.03

Correlation Coefficient

CXApp  Appswarm

Significant diversification

The 3 months correlation between CXApp and Appswarm is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Appswarm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appswarm 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 Appswarm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appswarm has no effect on the direction of CXApp i.e., CXApp and Appswarm go up and down completely randomly.

Pair Corralation between CXApp and Appswarm

Given the investment horizon of 90 days CXApp Inc is expected to under-perform the Appswarm. But the stock apears to be less risky and, when comparing its historical volatility, CXApp Inc is 4.27 times less risky than Appswarm. The stock trades about -0.04 of its potential returns per unit of risk. The Appswarm is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  0.02  in Appswarm on December 1, 2024 and sell it today you would earn a total of  0.00  from holding Appswarm or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

CXApp Inc  vs.  Appswarm

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.

Appswarm

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Appswarm are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Appswarm displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and Appswarm

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

The idea behind CXApp Inc and Appswarm 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.