Correlation Between Emerson Radio and CXApp

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

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

Diversification Opportunities for Emerson Radio and CXApp

-0.01

Correlation Coefficient

Emerson Radio  CXApp

Good diversification

The 3 months correlation between Emerson and CXApp is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Emerson Radio and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Emerson Radio 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 Emerson Radio 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 Emerson Radio i.e., Emerson Radio and CXApp go up and down completely randomly.

Pair Corralation between Emerson Radio and CXApp

Considering the 90-day investment horizon Emerson Radio is expected to generate 38.21 times less return on investment than CXApp. But when comparing it to its historical volatility, Emerson Radio is 5.25 times less risky than CXApp. It trades about 0.01 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  6.97  in CXApp Inc on October 22, 2024 and sell it today you would earn a total of  11.89  from holding CXApp Inc or generate 170.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.19%
Values	Daily Returns

Emerson Radio  vs.  CXApp Inc

Emerson Radio

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Emerson Radio are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Emerson Radio may actually be approaching a critical reversion point that can send shares even higher in February 2025.

CXApp Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, CXApp may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Emerson Radio and CXApp

The main advantage of trading using opposite Emerson Radio and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerson Radio 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 Emerson Radio 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.