Correlation Between CXApp and Intapp
Can any of the company-specific risk be diversified away by investing in both CXApp and Intapp 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 Intapp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and Intapp Inc, you can compare the effects of market volatilities on CXApp and Intapp 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 Intapp. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Intapp.
Diversification Opportunities for CXApp and Intapp
Very weak diversification
The 3 months correlation between CXApp and Intapp is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Intapp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intapp Inc 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 Intapp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intapp Inc has no effect on the direction of CXApp i.e., CXApp and Intapp go up and down completely randomly.
Pair Corralation between CXApp and Intapp
Given the investment horizon of 90 days CXApp Inc is expected to under-perform the Intapp. In addition to that, CXApp is 2.13 times more volatile than Intapp Inc. It trades about -0.19 of its total potential returns per unit of risk. Intapp Inc is currently generating about 0.19 per unit of volatility. If you would invest 6,463 in Intapp Inc on November 3, 2024 and sell it today you would earn a total of 666.00 from holding Intapp Inc or generate 10.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CXApp Inc vs. Intapp Inc
Performance |
| Timeline |
| CXApp Inc |
| Intapp Inc |
CXApp and Intapp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CXApp and Intapp
The main advantage of trading using opposite CXApp and Intapp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, Intapp 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 Intapp will offset losses from the drop in Intapp's long position.The idea behind CXApp Inc and Intapp Inc 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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