Correlation Between Clearwater Analytics and CXApp
Can any of the company-specific risk be diversified away by investing in both Clearwater Analytics 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 Clearwater Analytics and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clearwater Analytics Holdings and CXApp Inc, you can compare the effects of market volatilities on Clearwater Analytics 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 Clearwater Analytics with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clearwater Analytics and CXApp.
Diversification Opportunities for Clearwater Analytics and CXApp
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Clearwater and CXApp is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Clearwater Analytics Holdings and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Clearwater Analytics 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 Clearwater Analytics 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 Clearwater Analytics i.e., Clearwater Analytics and CXApp go up and down completely randomly.
Pair Corralation between Clearwater Analytics and CXApp
Given the investment horizon of 90 days Clearwater Analytics Holdings is expected to generate 0.35 times more return on investment than CXApp. However, Clearwater Analytics Holdings is 2.87 times less risky than CXApp. It trades about 0.09 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.19 per unit of risk. If you would invest 2,721 in Clearwater Analytics Holdings on November 3, 2024 and sell it today you would earn a total of 95.00 from holding Clearwater Analytics Holdings or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clearwater Analytics Holdings vs. CXApp Inc
Performance |
| Timeline |
| Clearwater Analytics |
| CXApp Inc |
Clearwater Analytics and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clearwater Analytics and CXApp
The main advantage of trading using opposite Clearwater Analytics and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clearwater Analytics 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.| Clearwater Analytics vs. Paylocity Holdng | Clearwater Analytics vs. Alkami Technology | Clearwater Analytics vs. Expensify | Clearwater Analytics vs. Paycor HCM |
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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