Correlation Between Full Truck and CXApp
Can any of the company-specific risk be diversified away by investing in both Full Truck 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 Full Truck and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Full Truck Alliance and CXApp Inc, you can compare the effects of market volatilities on Full Truck 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 Full Truck with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Full Truck and CXApp.
Diversification Opportunities for Full Truck and CXApp
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Full and CXApp is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Full Truck Alliance and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Full Truck 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 Full Truck Alliance 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 Full Truck i.e., Full Truck and CXApp go up and down completely randomly.
Pair Corralation between Full Truck and CXApp
Considering the 90-day investment horizon Full Truck Alliance is expected to generate 0.31 times more return on investment than CXApp. However, Full Truck Alliance is 3.26 times less risky than CXApp. It trades about 0.12 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.19 per unit of risk. If you would invest 1,082 in Full Truck Alliance on November 3, 2024 and sell it today you would earn a total of 44.00 from holding Full Truck Alliance or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Full Truck Alliance vs. CXApp Inc
Performance |
| Timeline |
| Full Truck Alliance |
| CXApp Inc |
Full Truck and CXApp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Full Truck and CXApp
The main advantage of trading using opposite Full Truck and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Full Truck 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.| Full Truck vs. Domo Inc | Full Truck vs. Oblong Inc | Full Truck vs. Kingsoft Cloud Holdings | Full Truck vs. Bm 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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