Correlation Between Enfusion and CXApp
Can any of the company-specific risk be diversified away by investing in both Enfusion 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 Enfusion and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enfusion and CXApp Inc, you can compare the effects of market volatilities on Enfusion 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 Enfusion with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enfusion and CXApp.
Diversification Opportunities for Enfusion and CXApp
Good diversification
The 3 months correlation between Enfusion and CXApp is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Enfusion and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Enfusion 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 Enfusion 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 Enfusion i.e., Enfusion and CXApp go up and down completely randomly.
Pair Corralation between Enfusion and CXApp
Given the investment horizon of 90 days Enfusion is expected to generate 0.26 times more return on investment than CXApp. However, Enfusion is 3.83 times less risky than CXApp. It trades about 0.32 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.11 per unit of risk. If you would invest 950.00 in Enfusion on September 13, 2024 and sell it today you would earn a total of 107.00 from holding Enfusion or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enfusion vs. CXApp Inc
Performance |
| Timeline |
| Enfusion |
| CXApp Inc |
Enfusion and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enfusion and CXApp
The main advantage of trading using opposite Enfusion and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enfusion 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.| Enfusion vs. ON24 Inc | Enfusion vs. Paycor HCM | Enfusion vs. E2open Parent Holdings | Enfusion vs. Braze 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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