Correlation Between EastGroup Properties and CXApp

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

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

Diversification Opportunities for EastGroup Properties and CXApp

0.01

Correlation Coefficient

EastGroup Properties  CXApp

Significant diversification

The 3 months correlation between EastGroup and CXApp is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding EastGroup Properties and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and EastGroup Properties 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 EastGroup Properties 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 EastGroup Properties i.e., EastGroup Properties and CXApp go up and down completely randomly.

Pair Corralation between EastGroup Properties and CXApp

Considering the 90-day investment horizon EastGroup Properties is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, EastGroup Properties is 2.72 times less risky than CXApp. The stock trades about -0.3 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  21.00  in CXApp Inc on October 10, 2024 and sell it today you would earn a total of  0.00  from holding CXApp Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.24%
Values	Daily Returns

EastGroup Properties  vs.  CXApp Inc

EastGroup Properties

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EastGroup Properties has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest unfluctuating performance, the Stock's technical and fundamental indicators remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

CXApp Inc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with EastGroup Properties and CXApp

The main advantage of trading using opposite EastGroup Properties and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EastGroup Properties 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 EastGroup Properties 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.