Correlation Between Uber Technologies and CXApp
Can any of the company-specific risk be diversified away by investing in both Uber 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 Uber Technologies and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and CXApp Inc, you can compare the effects of market volatilities on Uber 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 Uber Technologies with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and CXApp.
Diversification Opportunities for Uber Technologies and CXApp
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Uber and CXApp is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Uber 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 Uber Technologies 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 Uber Technologies i.e., Uber Technologies and CXApp go up and down completely randomly.
Pair Corralation between Uber Technologies and CXApp
Given the investment horizon of 90 days Uber Technologies is expected to generate 6.19 times less return on investment than CXApp. But when comparing it to its historical volatility, Uber Technologies is 6.44 times less risky than CXApp. It trades about 0.05 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 47.00 in CXApp Inc on September 12, 2024 and sell it today you would lose (25.00) from holding CXApp Inc or give up 53.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.43% |
| Values | Daily Returns |
Uber Technologies vs. CXApp Inc
Performance |
| Timeline |
| Uber Technologies |
| CXApp Inc |
Uber Technologies and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and CXApp
The main advantage of trading using opposite Uber Technologies and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber 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.| Uber Technologies vs. Manhattan Associates | Uber Technologies vs. Paycom Soft | Uber Technologies vs. Clearwater Analytics Holdings | Uber Technologies vs. Procore Technologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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