Correlation Between Broadleaf and CXApp

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

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

Diversification Opportunities for Broadleaf and CXApp

-0.15

Correlation Coefficient

Broadleaf  CXApp

Good diversification

The 3 months correlation between Broadleaf and CXApp is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Broadleaf Co and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Broadleaf 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 Broadleaf Co 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 Broadleaf i.e., Broadleaf and CXApp go up and down completely randomly.

Pair Corralation between Broadleaf and CXApp

Assuming the 90 days horizon Broadleaf is expected to generate 13.32 times less return on investment than CXApp. But when comparing it to its historical volatility, Broadleaf Co is 6.4 times less risky than CXApp. It trades about 0.05 of its potential returns per unit of risk. CXApp Inc is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  3.05  in CXApp Inc on September 25, 2024 and sell it today you would earn a total of  17.95  from holding CXApp Inc or generate 588.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.59%
Values	Daily Returns

Broadleaf Co  vs.  CXApp Inc

Broadleaf

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Broadleaf Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Broadleaf is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

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. In spite of fairly stable forward indicators, CXApp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Broadleaf and CXApp

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

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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.