Correlation Between Lytus Technologies and CXApp
Can any of the company-specific risk be diversified away by investing in both Lytus Technologies 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 Lytus Technologies and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lytus Technologies Holdings and CXApp Inc, you can compare the effects of market volatilities on Lytus Technologies 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 Lytus Technologies with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lytus Technologies and CXApp.
Diversification Opportunities for Lytus Technologies and CXApp
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lytus and CXApp is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Lytus Technologies Holdings and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Lytus Technologies 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 Lytus Technologies 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 Lytus Technologies i.e., Lytus Technologies and CXApp go up and down completely randomly.
Pair Corralation between Lytus Technologies and CXApp
Considering the 90-day investment horizon Lytus Technologies Holdings is expected to under-perform the CXApp. In addition to that, Lytus Technologies is 1.33 times more volatile than CXApp Inc. It trades about -0.02 of its total potential returns per unit of risk. CXApp Inc is currently generating about 0.06 per unit of volatility. If you would invest 8.68 in CXApp Inc on December 12, 2024 and sell it today you would earn a total of 4.32 from holding CXApp Inc or generate 49.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.31% |
| Values | Daily Returns |
Lytus Technologies Holdings vs. CXApp Inc
Performance |
| Timeline |
| Lytus Technologies |
| CXApp Inc |
Lytus Technologies and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lytus Technologies and CXApp
The main advantage of trading using opposite Lytus Technologies and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lytus Technologies 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.| Lytus Technologies vs. RenoWorks Software | ||
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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