Correlation Between Wheels Up and CXApp
Can any of the company-specific risk be diversified away by investing in both Wheels Up 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 Wheels Up and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wheels Up Experience and CXApp Inc, you can compare the effects of market volatilities on Wheels Up 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 Wheels Up with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wheels Up and CXApp.
Diversification Opportunities for Wheels Up and CXApp
Weak diversification
The 3 months correlation between Wheels and CXApp is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wheels Up Experience and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Wheels Up 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 Wheels Up Experience 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 Wheels Up i.e., Wheels Up and CXApp go up and down completely randomly.
Pair Corralation between Wheels Up and CXApp
Allowing for the 90-day total investment horizon Wheels Up Experience is expected to generate 0.85 times more return on investment than CXApp. However, Wheels Up Experience is 1.17 times less risky than CXApp. It trades about -0.03 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.41 per unit of risk. If you would invest 167.00 in Wheels Up Experience on October 29, 2024 and sell it today you would lose (5.00) from holding Wheels Up Experience or give up 2.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wheels Up Experience vs. CXApp Inc
Performance |
| Timeline |
| Wheels Up Experience |
| CXApp Inc |
Wheels Up and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wheels Up and CXApp
The main advantage of trading using opposite Wheels Up and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wheels Up 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.| Wheels Up vs. Blade Air Mobility | Wheels Up vs. Clear Secure | Wheels Up vs. Archer Aviation | Wheels Up vs. Beauty Health Co |
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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