Correlation Between CXApp and Paycor HCM

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

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

Diversification Opportunities for CXApp and Paycor HCM

-0.19

Correlation Coefficient

CXApp  Paycor HCM

Good diversification

The 3 months correlation between CXApp and Paycor is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Paycor HCM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paycor HCM 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 Paycor HCM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paycor HCM has no effect on the direction of CXApp i.e., CXApp and Paycor HCM go up and down completely randomly.

Pair Corralation between CXApp and Paycor HCM

Assuming the 90 days horizon CXApp Inc is expected to under-perform the Paycor HCM. In addition to that, CXApp is 2.94 times more volatile than Paycor HCM. It trades about -0.05 of its total potential returns per unit of risk. Paycor HCM is currently generating about 0.29 per unit of volatility. If you would invest  1,713  in Paycor HCM on September 22, 2024 and sell it today you would earn a total of  193.00  from holding Paycor HCM or generate 11.27% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

CXApp Inc  vs.  Paycor HCM

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.

Paycor HCM

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Paycor HCM are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent fundamental indicators, Paycor HCM reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and Paycor HCM

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

The idea behind CXApp Inc and Paycor HCM 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..