Correlation Between Inpixon and Appswarm

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Can any of the company-specific risk be diversified away by investing in both Inpixon and Appswarm 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 Inpixon and Appswarm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inpixon and Appswarm, you can compare the effects of market volatilities on Inpixon and Appswarm 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 Inpixon with a short position of Appswarm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inpixon and Appswarm.

Diversification Opportunities for Inpixon and Appswarm

-0.1
  Correlation Coefficient

Good diversification

The 3 months correlation between Inpixon and Appswarm is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Inpixon and Appswarm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Appswarm and Inpixon 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 Inpixon are associated (or correlated) with Appswarm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Appswarm has no effect on the direction of Inpixon i.e., Inpixon and Appswarm go up and down completely randomly.

Pair Corralation between Inpixon and Appswarm

Given the investment horizon of 90 days Inpixon is expected to under-perform the Appswarm. But the stock apears to be less risky and, when comparing its historical volatility, Inpixon is 1.14 times less risky than Appswarm. The stock trades about -0.07 of its potential returns per unit of risk. The Appswarm is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  0.10  in Appswarm on September 6, 2024 and sell it today you would lose (0.08) from holding Appswarm or give up 80.0% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy30.3%
ValuesDaily Returns

Inpixon  vs.  Appswarm

 Performance 
       Timeline  
Inpixon 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Inpixon has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Inpixon is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.
Appswarm 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Appswarm are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very conflicting basic indicators, Appswarm displayed solid returns over the last few months and may actually be approaching a breakup point.

Inpixon and Appswarm Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Inpixon and Appswarm

The main advantage of trading using opposite Inpixon and Appswarm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inpixon position performs unexpectedly, Appswarm 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 Appswarm will offset losses from the drop in Appswarm's long position.
The idea behind Inpixon and Appswarm 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.
Check out your portfolio center.
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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