Correlation Between Marketwise and CXApp

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

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

Diversification Opportunities for Marketwise and CXApp

0.77

Correlation Coefficient

Marketwise  CXApp

Poor diversification

The 3 months correlation between Marketwise and CXApp is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Marketwise and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Marketwise 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 Marketwise 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 Marketwise i.e., Marketwise and CXApp go up and down completely randomly.

Pair Corralation between Marketwise and CXApp

Given the investment horizon of 90 days Marketwise is expected to under-perform the CXApp. In addition to that, Marketwise is 1.04 times more volatile than CXApp Inc. It trades about -0.1 of its total potential returns per unit of risk. CXApp Inc is currently generating about -0.03 per unit of volatility. If you would invest  193.00  in CXApp Inc on September 4, 2024 and sell it today you would lose (29.00) from holding CXApp Inc or give up 15.03% of portfolio value over 90 days.

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

Marketwise  vs.  CXApp Inc

Marketwise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Marketwise has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in January 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated 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. Despite latest unsteady performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Marketwise and CXApp

The main advantage of trading using opposite Marketwise and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marketwise 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 Marketwise 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.