Correlation Between CXApp and ADEIA P

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

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

Diversification Opportunities for CXApp and ADEIA P

-0.41

Correlation Coefficient

CXApp  ADEIA P

Very good diversification

The 3 months correlation between CXApp and ADEIA is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and ADEIA P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADEIA P 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 ADEIA P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADEIA P has no effect on the direction of CXApp i.e., CXApp and ADEIA P go up and down completely randomly.

Pair Corralation between CXApp and ADEIA P

Assuming the 90 days horizon CXApp Inc is expected to generate 6.79 times more return on investment than ADEIA P. However, CXApp is 6.79 times more volatile than ADEIA P. It trades about 0.09 of its potential returns per unit of risk. ADEIA P is currently generating about 0.04 per unit of risk. If you would invest  3.01  in CXApp Inc on September 22, 2024 and sell it today you would earn a total of  17.99  from holding CXApp Inc or generate 597.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.59%
Values	Daily Returns

CXApp Inc  vs.  ADEIA P

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. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

ADEIA P

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ADEIA P are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating technical and fundamental indicators, ADEIA P sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and ADEIA P

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

The idea behind CXApp Inc and ADEIA P 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.