Correlation Between Trust Stamp and CXApp

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

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

Diversification Opportunities for Trust Stamp and CXApp

0.71

Correlation Coefficient

Trust Stamp  CXApp

Poor diversification

The 3 months correlation between Trust and CXApp is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Trust Stamp 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 Trust Stamp 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 Trust Stamp i.e., Trust Stamp and CXApp go up and down completely randomly.

Pair Corralation between Trust Stamp and CXApp

Given the investment horizon of 90 days Trust Stamp is expected to under-perform the CXApp. In addition to that, Trust Stamp is 1.35 times more volatile than CXApp Inc. It trades about -0.49 of its total potential returns per unit of risk. CXApp Inc is currently generating about -0.25 per unit of volatility. If you would invest  199.00  in CXApp Inc on December 28, 2024 and sell it today you would lose (114.00) from holding CXApp Inc or give up 57.29% of portfolio value over 90 days.

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

Trust Stamp  vs.  CXApp Inc

Trust Stamp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trust Stamp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

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. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Trust Stamp and CXApp

The main advantage of trading using opposite Trust Stamp and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp 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 Trust Stamp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.