Correlation Between Sonida Senior and CXApp
Can any of the company-specific risk be diversified away by investing in both Sonida Senior 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 Sonida Senior and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonida Senior Living and CXApp Inc, you can compare the effects of market volatilities on Sonida Senior 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 Sonida Senior with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonida Senior and CXApp.
Diversification Opportunities for Sonida Senior and CXApp
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sonida and CXApp is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sonida Senior Living and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Sonida Senior 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 Sonida Senior Living 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 Sonida Senior i.e., Sonida Senior and CXApp go up and down completely randomly.
Pair Corralation between Sonida Senior and CXApp
Given the investment horizon of 90 days Sonida Senior Living is expected to under-perform the CXApp. But the stock apears to be less risky and, when comparing its historical volatility, Sonida Senior Living is 1.81 times less risky than CXApp. The stock trades about -0.02 of its potential returns per unit of risk. The CXApp Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 20.00 in CXApp Inc on October 14, 2024 and sell it today you would earn a total of 0.00 from holding CXApp Inc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sonida Senior Living vs. CXApp Inc
Performance |
| Timeline |
| Sonida Senior Living |
| CXApp Inc |
Sonida Senior and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonida Senior and CXApp
The main advantage of trading using opposite Sonida Senior and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonida Senior 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.| Sonida Senior vs. Select Medical Holdings | Sonida Senior vs. Encompass Health Corp | Sonida Senior vs. Pennant Group | Sonida Senior vs. InnovAge Holding Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| CEOs Directory Screen CEOs from public companies around the world |