Correlation Between CXApp and Dermata Therapeutics

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

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

Diversification Opportunities for CXApp and Dermata Therapeutics

0.81

Correlation Coefficient

CXApp  Dermata Therapeutics

Very poor diversification

The 3 months correlation between CXApp and Dermata is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Dermata Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dermata Therapeutics 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 Dermata Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dermata Therapeutics has no effect on the direction of CXApp i.e., CXApp and Dermata Therapeutics go up and down completely randomly.

Pair Corralation between CXApp and Dermata Therapeutics

Given the investment horizon of 90 days CXApp Inc is expected to under-perform the Dermata Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, CXApp Inc is 1.07 times less risky than Dermata Therapeutics. The stock trades about -0.07 of its potential returns per unit of risk. The Dermata Therapeutics is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  700.00  in Dermata Therapeutics on June 16, 2025 and sell it today you would lose (159.00) from holding Dermata Therapeutics or give up 22.71% of portfolio value over 90 days.

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

CXApp Inc  vs.  Dermata Therapeutics

CXApp Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days CXApp Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in October 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Dermata Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Dermata Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's primary indicators remain somewhat strong which may send shares a bit higher in October 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CXApp and Dermata Therapeutics

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

The idea behind CXApp Inc and Dermata Therapeutics 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.