Correlation Between National Vision and CXApp
Can any of the company-specific risk be diversified away by investing in both National Vision 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 National Vision and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National Vision Holdings and CXApp Inc, you can compare the effects of market volatilities on National Vision 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 National Vision with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of National Vision and CXApp.
Diversification Opportunities for National Vision and CXApp
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between National and CXApp is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding National Vision Holdings and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and National Vision 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 National Vision Holdings 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 National Vision i.e., National Vision and CXApp go up and down completely randomly.
Pair Corralation between National Vision and CXApp
Considering the 90-day investment horizon National Vision Holdings is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, National Vision Holdings is 5.97 times less risky than CXApp. The stock trades about -0.05 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 4.81 in CXApp Inc on September 2, 2024 and sell it today you would earn a total of 17.19 from holding CXApp Inc or generate 357.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.19% |
| Values | Daily Returns |
National Vision Holdings vs. CXApp Inc
Performance |
| Timeline |
| National Vision Holdings |
| CXApp Inc |
National Vision and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with National Vision and CXApp
The main advantage of trading using opposite National Vision and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Vision 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.| National Vision vs. Sally Beauty Holdings | National Vision vs. MarineMax | National Vision vs. Sportsmans | National Vision vs. 1 800 FLOWERSCOM |
| CXApp vs. Swvl Holdings Corp | CXApp vs. SoundHound AI | CXApp vs. Dave Warrants | CXApp vs. Aquagold International |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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