Correlation Between CXApp and Appfolio

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

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

Diversification Opportunities for CXApp and Appfolio

0.01

Correlation Coefficient

CXApp  Appfolio

Significant diversification

The 3 months correlation between CXApp and Appfolio is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Appfolio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appfolio 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 Appfolio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appfolio has no effect on the direction of CXApp i.e., CXApp and Appfolio go up and down completely randomly.

Pair Corralation between CXApp and Appfolio

Assuming the 90 days horizon CXApp Inc is expected to under-perform the Appfolio. In addition to that, CXApp is 2.97 times more volatile than Appfolio. It trades about -0.05 of its total potential returns per unit of risk. Appfolio is currently generating about 0.16 per unit of volatility. If you would invest  23,673  in Appfolio on September 22, 2024 and sell it today you would earn a total of  1,506  from holding Appfolio or generate 6.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

CXApp Inc  vs.  Appfolio

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.

Appfolio

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Appfolio are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Appfolio may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with CXApp and Appfolio

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

The idea behind CXApp Inc and Appfolio 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.