Correlation Between CXApp and CLPS

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

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

Diversification Opportunities for CXApp and CLPS

0.22

Correlation Coefficient

CXApp  CLPS

Modest diversification

The 3 months correlation between CXApp and CLPS is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and CLPS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CLPS Inc 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 CLPS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CLPS Inc has no effect on the direction of CXApp i.e., CXApp and CLPS go up and down completely randomly.

Pair Corralation between CXApp and CLPS

Given the investment horizon of 90 days CXApp Inc is expected to generate 1.91 times more return on investment than CLPS. However, CXApp is 1.91 times more volatile than CLPS Inc. It trades about 0.0 of its potential returns per unit of risk. CLPS Inc is currently generating about -0.01 per unit of risk. If you would invest  117.00  in CXApp Inc on April 24, 2025 and sell it today you would lose (9.00) from holding CXApp Inc or give up 7.69% of portfolio value over 90 days.

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

CXApp Inc  vs.  CLPS Inc

CXApp Inc

Risk-Adjusted Performance

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.

CLPS Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days CLPS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CLPS is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with CXApp and CLPS

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

The idea behind CXApp Inc and CLPS 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.