Correlation Between SoundHound and CXApp
Can any of the company-specific risk be diversified away by investing in both SoundHound 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 SoundHound and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoundHound AI and CXApp Inc, you can compare the effects of market volatilities on SoundHound 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 SoundHound with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoundHound and CXApp.
Diversification Opportunities for SoundHound and CXApp
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SoundHound and CXApp is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding SoundHound AI and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and SoundHound 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 SoundHound AI 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 SoundHound i.e., SoundHound and CXApp go up and down completely randomly.
Pair Corralation between SoundHound and CXApp
Assuming the 90 days horizon SoundHound AI is expected to generate 3.15 times more return on investment than CXApp. However, SoundHound is 3.15 times more volatile than CXApp Inc. It trades about 0.46 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.04 per unit of risk. If you would invest 310.00 in SoundHound AI on September 25, 2024 and sell it today you would earn a total of 816.00 from holding SoundHound AI or generate 263.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
SoundHound AI vs. CXApp Inc
Performance |
Timeline |
SoundHound AI |
CXApp Inc |
SoundHound and CXApp Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SoundHound and CXApp
The main advantage of trading using opposite SoundHound and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoundHound 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.SoundHound vs. Dubber Limited | SoundHound vs. Advanced Health Intelligence | SoundHound vs. Danavation Technologies Corp | SoundHound vs. BASE Inc |
CXApp vs. Swvl Holdings Corp | CXApp vs. SoundHound AI | CXApp vs. Dave Warrants | CXApp vs. Aquagold International |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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