Correlation Between Elite Education and CXApp

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

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

Diversification Opportunities for Elite Education and CXApp

0.68

Correlation Coefficient

Elite Education  CXApp

Poor diversification

The 3 months correlation between Elite and CXApp is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Elite Education Group and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Elite Education 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 Elite Education Group are associated (or correlated) with CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Elite Education i.e., Elite Education and CXApp go up and down completely randomly.

Pair Corralation between Elite Education and CXApp

Given the investment horizon of 90 days Elite Education Group is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Elite Education Group is 1.25 times less risky than CXApp. The stock trades about -0.15 of its potential returns per unit of risk. The CXApp Inc is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  21.00  in CXApp Inc on December 19, 2024 and sell it today you would lose (7.00) from holding CXApp Inc or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.33%
Values	Daily Returns

Elite Education Group  vs.  CXApp Inc

Elite Education Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Elite Education Group has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

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. In spite of unsteady performance in the last few months, the Stock's forward indicators remain fairly stable which may send shares a bit higher in April 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Elite Education and CXApp

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

The idea behind Elite Education Group and CXApp Inc 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 Transaction History module to view history of all your transactions and understand their impact on performance.