Correlation Between Luokung Technology and CXApp
Can any of the company-specific risk be diversified away by investing in both Luokung Technology 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 Luokung Technology and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Luokung Technology Corp and CXApp Inc, you can compare the effects of market volatilities on Luokung Technology 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 Luokung Technology with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luokung Technology and CXApp.
Diversification Opportunities for Luokung Technology and CXApp
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Luokung and CXApp is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Luokung Technology Corp and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Luokung Technology 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 Luokung Technology Corp 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 Luokung Technology i.e., Luokung Technology and CXApp go up and down completely randomly.
Pair Corralation between Luokung Technology and CXApp
Given the investment horizon of 90 days Luokung Technology Corp is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Luokung Technology Corp is 2.19 times less risky than CXApp. The stock trades about -0.04 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 151.00 in CXApp Inc on September 14, 2024 and sell it today you would earn a total of 17.00 from holding CXApp Inc or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luokung Technology Corp vs. CXApp Inc
Performance |
| Timeline |
| Luokung Technology Corp |
| CXApp Inc |
Luokung Technology and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luokung Technology and CXApp
The main advantage of trading using opposite Luokung Technology and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luokung Technology 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.| Luokung Technology vs. Auddia Inc | Luokung Technology vs. Freight Technologies | Luokung Technology vs. CXApp Inc | Luokung Technology vs. Trust Stamp |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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