Correlation Between Desktop Metal and CXApp
Can any of the company-specific risk be diversified away by investing in both Desktop Metal 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 Desktop Metal and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desktop Metal and CXApp Inc, you can compare the effects of market volatilities on Desktop Metal 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 Desktop Metal with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desktop Metal and CXApp.
Diversification Opportunities for Desktop Metal and CXApp
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Desktop and CXApp is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Desktop Metal and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Desktop Metal 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 Desktop Metal 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 Desktop Metal i.e., Desktop Metal and CXApp go up and down completely randomly.
Pair Corralation between Desktop Metal and CXApp
Allowing for the 90-day total investment horizon Desktop Metal is expected to under-perform the CXApp. In addition to that, Desktop Metal is 1.0 times more volatile than CXApp Inc. It trades about -0.14 of its total potential returns per unit of risk. CXApp Inc is currently generating about -0.07 per unit of volatility. If you would invest 22.00 in CXApp Inc on August 31, 2024 and sell it today you would lose (2.00) from holding CXApp Inc or give up 9.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desktop Metal vs. CXApp Inc
Performance |
| Timeline |
| Desktop Metal |
| CXApp Inc |
Desktop Metal and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desktop Metal and CXApp
The main advantage of trading using opposite Desktop Metal and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desktop Metal 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.| Desktop Metal vs. Nano Dimension | Desktop Metal vs. 3D Systems | Desktop Metal vs. Markforged Holding Corp | Desktop Metal vs. Stratasys |
| CXApp vs. Playstudios | CXApp vs. SunLink Health Systems | CXApp vs. Simon Property Group | CXApp vs. National Vision Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |