Correlation Between Enlight Renewable and CXApp
Can any of the company-specific risk be diversified away by investing in both Enlight Renewable 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 Enlight Renewable and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enlight Renewable Energy and CXApp Inc, you can compare the effects of market volatilities on Enlight Renewable 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 Enlight Renewable with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enlight Renewable and CXApp.
Diversification Opportunities for Enlight Renewable and CXApp
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Enlight and CXApp is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Enlight Renewable Energy and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Enlight Renewable 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 Enlight Renewable 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 Enlight Renewable i.e., Enlight Renewable and CXApp go up and down completely randomly.
Pair Corralation between Enlight Renewable and CXApp
Given the investment horizon of 90 days Enlight Renewable Energy is expected to generate 0.65 times more return on investment than CXApp. However, Enlight Renewable Energy is 1.54 times less risky than CXApp. It trades about 0.04 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.07 per unit of risk. If you would invest 1,644 in Enlight Renewable Energy on October 16, 2024 and sell it today you would earn a total of 21.00 from holding Enlight Renewable Energy or generate 1.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enlight Renewable Energy vs. CXApp Inc
Performance |
| Timeline |
| Enlight Renewable Energy |
| CXApp Inc |
Enlight Renewable and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enlight Renewable and CXApp
The main advantage of trading using opposite Enlight Renewable and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enlight Renewable 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.| Enlight Renewable vs. Group 1 Automotive | Enlight Renewable vs. Academy Sports Outdoors | Enlight Renewable vs. Western Copper and | Enlight Renewable vs. Victorias Secret Co |
| CXApp vs. Summit Environmental | CXApp vs. Enlight Renewable Energy | CXApp vs. Enel Chile SA | CXApp vs. Lizhan Environmental |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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