Correlation Between Freight Technologies and CXApp

Can any of the company-specific risk be diversified away by investing in both Freight 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 Freight Technologies and CXApp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Freight Technologies and CXApp Inc, you can compare the effects of market volatilities on Freight 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 Freight Technologies with a short position of CXApp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Freight Technologies and CXApp.

Diversification Opportunities for Freight Technologies and CXApp

0.73

Correlation Coefficient

Freight Technologies  CXApp

Poor diversification

The 3 months correlation between Freight and CXApp is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Freight Technologies and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Freight 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 Freight 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 Freight Technologies i.e., Freight Technologies and CXApp go up and down completely randomly.

Pair Corralation between Freight Technologies and CXApp

Given the investment horizon of 90 days Freight Technologies is expected to under-perform the CXApp. In addition to that, Freight Technologies is 3.19 times more volatile than CXApp Inc. It trades about -0.3 of its total potential returns per unit of risk. CXApp Inc is currently generating about -0.19 per unit of volatility. If you would invest  179.00  in CXApp Inc on July 8, 2024 and sell it today you would lose (22.00) from holding CXApp Inc or give up 12.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Freight Technologies  vs.  CXApp Inc

Freight Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Freight Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in November 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

CXApp Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, CXApp is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Freight Technologies and CXApp

The main advantage of trading using opposite Freight Technologies and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Freight 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.

The idea behind Freight Technologies and CXApp Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.