Correlation Between Hawkins and CXApp

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

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

Diversification Opportunities for Hawkins and CXApp

-0.1

Correlation Coefficient

Hawkins  CXApp

Good diversification

The 3 months correlation between Hawkins and CXApp is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Hawkins and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Hawkins 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 Hawkins 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 Hawkins i.e., Hawkins and CXApp go up and down completely randomly.

Pair Corralation between Hawkins and CXApp

Given the investment horizon of 90 days Hawkins is expected to generate 5.83 times less return on investment than CXApp. But when comparing it to its historical volatility, Hawkins is 7.3 times less risky than CXApp. It trades about 0.11 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  4.69  in CXApp Inc on October 4, 2024 and sell it today you would earn a total of  17.31  from holding CXApp Inc or generate 369.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.99%
Values	Daily Returns

Hawkins  vs.  CXApp Inc

Hawkins

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hawkins has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, Hawkins is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

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

Pair Trading with Hawkins and CXApp

The main advantage of trading using opposite Hawkins and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hawkins 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 Hawkins 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.