Correlation Between Paysafe and CXApp

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

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

Diversification Opportunities for Paysafe and CXApp

0.04

Correlation Coefficient

Paysafe  CXApp

Significant diversification

The 3 months correlation between Paysafe and CXApp is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Paysafe and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Paysafe 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 Paysafe 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 Paysafe i.e., Paysafe and CXApp go up and down completely randomly.

Pair Corralation between Paysafe and CXApp

Given the investment horizon of 90 days Paysafe is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Paysafe is 1.44 times less risky than CXApp. The stock trades about -0.06 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  19.00  in CXApp Inc on October 8, 2024 and sell it today you would earn a total of  2.00  from holding CXApp Inc or generate 10.53% return on investment over 90 days.

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

Paysafe  vs.  CXApp Inc

Paysafe

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paysafe 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 technical and fundamental indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

CXApp Inc

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady forward indicators, CXApp showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Paysafe and CXApp

The main advantage of trading using opposite Paysafe and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Paysafe 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 Paysafe 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.