Correlation Between CXApp and Bentley Systems
Can any of the company-specific risk be diversified away by investing in both CXApp and Bentley Systems 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 Bentley Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and Bentley Systems, you can compare the effects of market volatilities on CXApp and Bentley Systems 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 Bentley Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Bentley Systems.
Diversification Opportunities for CXApp and Bentley Systems
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between CXApp and Bentley is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Bentley Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bentley Systems 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 Bentley Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bentley Systems has no effect on the direction of CXApp i.e., CXApp and Bentley Systems go up and down completely randomly.
Pair Corralation between CXApp and Bentley Systems
Given the investment horizon of 90 days CXApp Inc is expected to generate 4.38 times more return on investment than Bentley Systems. However, CXApp is 4.38 times more volatile than Bentley Systems. It trades about 0.02 of its potential returns per unit of risk. Bentley Systems is currently generating about -0.02 per unit of risk. If you would invest 188.00 in CXApp Inc on September 12, 2024 and sell it today you would lose (7.50) from holding CXApp Inc or give up 3.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CXApp Inc vs. Bentley Systems
Performance |
| Timeline |
| CXApp Inc |
| Bentley Systems |
CXApp and Bentley Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CXApp and Bentley Systems
The main advantage of trading using opposite CXApp and Bentley Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, Bentley Systems 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 Bentley Systems will offset losses from the drop in Bentley Systems' long position.The idea behind CXApp Inc and Bentley Systems 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.| Bentley Systems vs. Appfolio | Bentley Systems vs. Workiva | Bentley Systems vs. Alarm Holdings | Bentley Systems vs. nCino Inc |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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