Correlation Between Astra Veda and CXApp
Can any of the company-specific risk be diversified away by investing in both Astra Veda 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 Astra Veda and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astra Veda and CXApp Inc, you can compare the effects of market volatilities on Astra Veda 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 Astra Veda with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astra Veda and CXApp.
Diversification Opportunities for Astra Veda and CXApp
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Astra and CXApp is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Astra Veda and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Astra Veda 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 Astra Veda 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 Astra Veda i.e., Astra Veda and CXApp go up and down completely randomly.
Pair Corralation between Astra Veda and CXApp
Given the investment horizon of 90 days Astra Veda is expected to generate 1.57 times more return on investment than CXApp. However, Astra Veda is 1.57 times more volatile than CXApp Inc. It trades about 0.03 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.02 per unit of risk. If you would invest 0.07 in Astra Veda on August 24, 2024 and sell it today you would lose (0.04) from holding Astra Veda or give up 57.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astra Veda vs. CXApp Inc
Performance |
| Timeline |
| Astra Veda |
| CXApp Inc |
Astra Veda and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astra Veda and CXApp
The main advantage of trading using opposite Astra Veda and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astra Veda 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.| Astra Veda vs. Nukkleus | Astra Veda vs. AB International Group | Astra Veda vs. APT Systems | Astra Veda vs. Protek Capital |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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