Correlation Between Digital Turbine and CXApp
Can any of the company-specific risk be diversified away by investing in both Digital Turbine 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 Digital Turbine and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Digital Turbine and CXApp Inc, you can compare the effects of market volatilities on Digital Turbine 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 Digital Turbine with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital Turbine and CXApp.
Diversification Opportunities for Digital Turbine and CXApp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Digital and CXApp is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Digital Turbine and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Digital Turbine 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 Digital Turbine 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 Digital Turbine i.e., Digital Turbine and CXApp go up and down completely randomly.
Pair Corralation between Digital Turbine and CXApp
Given the investment horizon of 90 days Digital Turbine is expected to under-perform the CXApp. In addition to that, Digital Turbine is 1.88 times more volatile than CXApp Inc. It trades about -0.28 of its total potential returns per unit of risk. CXApp Inc is currently generating about 0.1 per unit of volatility. If you would invest 145.00 in CXApp Inc on August 31, 2024 and sell it today you would earn a total of 14.00 from holding CXApp Inc or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital Turbine vs. CXApp Inc
Performance |
| Timeline |
| Digital Turbine |
| CXApp Inc |
Digital Turbine and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital Turbine and CXApp
The main advantage of trading using opposite Digital Turbine and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital Turbine 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.| Digital Turbine vs. Autodesk | Digital Turbine vs. Intuit Inc | Digital Turbine vs. Zoom Video Communications | Digital Turbine vs. Snowflake |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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