Correlation Between Presto Automation and CXApp

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

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

Diversification Opportunities for Presto Automation and CXApp

0.8

Correlation Coefficient

Presto Automation  CXApp

Very poor diversification

The 3 months correlation between Presto and CXApp is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Presto Automation and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Presto Automation 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 Presto Automation 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 Presto Automation i.e., Presto Automation and CXApp go up and down completely randomly.

Pair Corralation between Presto Automation and CXApp

If you would invest  0.47  in Presto Automation on August 30, 2024 and sell it today you would earn a total of  0.00  from holding Presto Automation or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	1.56%
Values	Daily Returns

Presto Automation  vs.  CXApp Inc

Presto Automation

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Presto Automation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Presto Automation is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the 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 unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Presto Automation and CXApp

The main advantage of trading using opposite Presto Automation and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Presto Automation 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 Presto Automation 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.