Correlation Between Daqo New and CXApp
Can any of the company-specific risk be diversified away by investing in both Daqo New 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 Daqo New and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daqo New Energy and CXApp Inc, you can compare the effects of market volatilities on Daqo New 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 Daqo New with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daqo New and CXApp.
Diversification Opportunities for Daqo New and CXApp
Very good diversification
The 3 months correlation between Daqo and CXApp is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Daqo New Energy and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Daqo New 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 Daqo New Energy 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 Daqo New i.e., Daqo New and CXApp go up and down completely randomly.
Pair Corralation between Daqo New and CXApp
Allowing for the 90-day total investment horizon Daqo New Energy is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Daqo New Energy is 1.17 times less risky than CXApp. The stock trades about -0.09 of its potential returns per unit of risk. The CXApp Inc is currently generating about -0.07 of returns per unit of risk over similar time horizon. 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 |
Daqo New Energy vs. CXApp Inc
Performance |
| Timeline |
| Daqo New Energy |
| CXApp Inc |
Daqo New and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daqo New and CXApp
The main advantage of trading using opposite Daqo New and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daqo New 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.| Daqo New vs. Power Integrations | Daqo New vs. Diodes Incorporated | Daqo New vs. MACOM Technology Solutions | Daqo New vs. Cirrus Logic |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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