Correlation Between CXApp and Agilysys

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Can any of the company-specific risk be diversified away by investing in both CXApp and Agilysys 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 CXApp and Agilysys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and Agilysys, you can compare the effects of market volatilities on CXApp and Agilysys 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 CXApp with a short position of Agilysys. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Agilysys.

Diversification Opportunities for CXApp and Agilysys

-0.27
  Correlation Coefficient

Very good diversification

The 3 months correlation between CXApp and Agilysys is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Agilysys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agilysys and CXApp 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 CXApp Inc are associated (or correlated) with Agilysys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agilysys has no effect on the direction of CXApp i.e., CXApp and Agilysys go up and down completely randomly.

Pair Corralation between CXApp and Agilysys

Given the investment horizon of 90 days CXApp Inc is expected to generate 4.54 times more return on investment than Agilysys. However, CXApp is 4.54 times more volatile than Agilysys. It trades about 0.14 of its potential returns per unit of risk. Agilysys is currently generating about 0.29 per unit of risk. If you would invest  166.00  in CXApp Inc on September 9, 2024 and sell it today you would earn a total of  35.00  from holding CXApp Inc or generate 21.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

CXApp Inc  vs.  Agilysys

 Performance 
       Timeline  
CXApp Inc 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady basic indicators, CXApp demonstrated solid returns over the last few months and may actually be approaching a breakup point.
Agilysys 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Agilysys are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Agilysys unveiled solid returns over the last few months and may actually be approaching a breakup point.

CXApp and Agilysys Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CXApp and Agilysys

The main advantage of trading using opposite CXApp and Agilysys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, Agilysys 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 Agilysys will offset losses from the drop in Agilysys' long position.
The idea behind CXApp Inc and Agilysys pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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