Correlation Between CXApp and Astra Veda
Can any of the company-specific risk be diversified away by investing in both CXApp and Astra Veda 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 Astra Veda into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and Astra Veda, you can compare the effects of market volatilities on CXApp and Astra Veda 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 Astra Veda. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Astra Veda.
Diversification Opportunities for CXApp and Astra Veda
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CXApp and Astra is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Astra Veda in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astra Veda 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 Astra Veda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astra Veda has no effect on the direction of CXApp i.e., CXApp and Astra Veda go up and down completely randomly.
Pair Corralation between CXApp and Astra Veda
Given the investment horizon of 90 days CXApp Inc is expected to generate 0.38 times more return on investment than Astra Veda. However, CXApp Inc is 2.65 times less risky than Astra Veda. It trades about -0.01 of its potential returns per unit of risk. Astra Veda is currently generating about -0.07 per unit of risk. If you would invest 143.00 in CXApp Inc on August 24, 2024 and sell it today you would lose (8.00) from holding CXApp Inc or give up 5.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CXApp Inc vs. Astra Veda
Performance |
| Timeline |
| CXApp Inc |
| Astra Veda |
CXApp and Astra Veda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CXApp and Astra Veda
The main advantage of trading using opposite CXApp and Astra Veda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, Astra Veda 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 Astra Veda will offset losses from the drop in Astra Veda's long position.The idea behind CXApp Inc and Astra Veda 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.| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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