Correlation Between CXApp and LifeSpeak
Can any of the company-specific risk be diversified away by investing in both CXApp and LifeSpeak 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 LifeSpeak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and LifeSpeak, you can compare the effects of market volatilities on CXApp and LifeSpeak 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 LifeSpeak. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and LifeSpeak.
Diversification Opportunities for CXApp and LifeSpeak
Very weak diversification
The 3 months correlation between CXApp and LifeSpeak is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and LifeSpeak in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LifeSpeak 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 LifeSpeak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LifeSpeak has no effect on the direction of CXApp i.e., CXApp and LifeSpeak go up and down completely randomly.
Pair Corralation between CXApp and LifeSpeak
Assuming the 90 days horizon CXApp Inc is expected to generate 1.21 times more return on investment than LifeSpeak. However, CXApp is 1.21 times more volatile than LifeSpeak. It trades about 0.0 of its potential returns per unit of risk. LifeSpeak is currently generating about -0.03 per unit of risk. If you would invest 24.00 in CXApp Inc on September 25, 2024 and sell it today you would lose (3.00) from holding CXApp Inc or give up 12.5% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.44% |
Values | Daily Returns |
CXApp Inc vs. LifeSpeak
Performance |
Timeline |
CXApp Inc |
LifeSpeak |
CXApp and LifeSpeak Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CXApp and LifeSpeak
The main advantage of trading using opposite CXApp and LifeSpeak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, LifeSpeak 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 LifeSpeak will offset losses from the drop in LifeSpeak's long position.CXApp vs. Swvl Holdings Corp | CXApp vs. SoundHound AI | CXApp vs. Dave Warrants | CXApp vs. Aquagold International |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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