Correlation Between Ke Holdings and CXApp
Can any of the company-specific risk be diversified away by investing in both Ke Holdings 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 Ke Holdings and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ke Holdings and CXApp Inc, you can compare the effects of market volatilities on Ke Holdings 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 Ke Holdings with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ke Holdings and CXApp.
Diversification Opportunities for Ke Holdings and CXApp
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BEKE and CXApp is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Ke Holdings and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Ke Holdings 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 Ke Holdings 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 Ke Holdings i.e., Ke Holdings and CXApp go up and down completely randomly.
Pair Corralation between Ke Holdings and CXApp
Given the investment horizon of 90 days Ke Holdings is expected to generate 1.15 times more return on investment than CXApp. However, Ke Holdings is 1.15 times more volatile than CXApp Inc. It trades about 0.1 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.02 per unit of risk. If you would invest 1,467 in Ke Holdings on September 3, 2024 and sell it today you would earn a total of 418.00 from holding Ke Holdings or generate 28.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ke Holdings vs. CXApp Inc
Performance |
| Timeline |
| Ke Holdings |
| CXApp Inc |
Ke Holdings and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ke Holdings and CXApp
The main advantage of trading using opposite Ke Holdings and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ke Holdings 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.| Ke Holdings vs. Marcus Millichap | Ke Holdings vs. Digitalbridge Group | Ke Holdings vs. Jones Lang LaSalle | Ke Holdings vs. CBRE Group Class |
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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