Correlation Between CXApp and LeddarTech Holdings

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

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

Diversification Opportunities for CXApp and LeddarTech Holdings

0.64

Correlation Coefficient

CXApp  LeddarTech Holdings

Poor diversification

The 3 months correlation between CXApp and LeddarTech is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and LeddarTech Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LeddarTech Holdings and CXApp 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 CXApp Inc are associated (or correlated) with LeddarTech Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LeddarTech Holdings has no effect on the direction of CXApp i.e., CXApp and LeddarTech Holdings go up and down completely randomly.

Pair Corralation between CXApp and LeddarTech Holdings

Given the investment horizon of 90 days CXApp Inc is expected to generate 0.69 times more return on investment than LeddarTech Holdings. However, CXApp Inc is 1.45 times less risky than LeddarTech Holdings. It trades about -0.05 of its potential returns per unit of risk. LeddarTech Holdings is currently generating about -0.07 per unit of risk. If you would invest  193.00  in CXApp Inc on September 5, 2024 and sell it today you would lose (36.00) from holding CXApp Inc or give up 18.65% of portfolio value over 90 days.

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

CXApp Inc  vs.  LeddarTech Holdings

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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

LeddarTech Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days LeddarTech Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in January 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with CXApp and LeddarTech Holdings

The main advantage of trading using opposite CXApp and LeddarTech Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, LeddarTech Holdings 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 LeddarTech Holdings will offset losses from the drop in LeddarTech Holdings' long position.

The idea behind CXApp Inc and LeddarTech Holdings 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 Global Correlations module to find global opportunities by holding instruments from different markets.