Correlation Between Freedom Holding and CXApp

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

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

Diversification Opportunities for Freedom Holding and CXApp

-0.42

Correlation Coefficient

Freedom Holding  CXApp

Very good diversification

The 3 months correlation between Freedom and CXApp is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Freedom Holding Corp and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Freedom Holding 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 Freedom Holding Corp 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 Freedom Holding i.e., Freedom Holding and CXApp go up and down completely randomly.

Pair Corralation between Freedom Holding and CXApp

Given the investment horizon of 90 days Freedom Holding Corp is expected to generate 0.48 times more return on investment than CXApp. However, Freedom Holding Corp is 2.06 times less risky than CXApp. It trades about 0.06 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.11 per unit of risk. If you would invest  12,717  in Freedom Holding Corp on December 20, 2024 and sell it today you would earn a total of  953.00  from holding Freedom Holding Corp or generate 7.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Freedom Holding Corp  vs.  CXApp Inc

Freedom Holding Corp

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Freedom Holding Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical indicators, Freedom Holding may actually be approaching a critical reversion point that can send shares even higher in April 2025.

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 inconsistent 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 Freedom Holding and CXApp

The main advantage of trading using opposite Freedom Holding and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freedom Holding 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 Freedom Holding Corp 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.