Correlation Between CXApp and Innodata
Can any of the company-specific risk be diversified away by investing in both CXApp and Innodata 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 Innodata into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CXApp Inc and Innodata, you can compare the effects of market volatilities on CXApp and Innodata 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 Innodata. Check out your portfolio center. Please also check ongoing floating volatility patterns of CXApp and Innodata.
Diversification Opportunities for CXApp and Innodata
Good diversification
The 3 months correlation between CXApp and Innodata is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and Innodata in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Innodata 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 Innodata. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Innodata has no effect on the direction of CXApp i.e., CXApp and Innodata go up and down completely randomly.
Pair Corralation between CXApp and Innodata
Given the investment horizon of 90 days CXApp Inc is expected to under-perform the Innodata. But the stock apears to be less risky and, when comparing its historical volatility, CXApp Inc is 1.54 times less risky than Innodata. The stock trades about -0.09 of its potential returns per unit of risk. The Innodata is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 3,481 in Innodata on May 21, 2025 and sell it today you would earn a total of 477.00 from holding Innodata or generate 13.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
CXApp Inc vs. Innodata
Performance |
Timeline |
CXApp Inc |
Innodata |
CXApp and Innodata Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CXApp and Innodata
The main advantage of trading using opposite CXApp and Innodata positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CXApp position performs unexpectedly, Innodata 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 Innodata will offset losses from the drop in Innodata's long position.The idea behind CXApp Inc and Innodata 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.Innodata vs. BigBearai Holdings | Innodata vs. FiscalNote Holdings | Innodata vs. Grid Dynamics Holdings | Innodata vs. Innovative Solutions and |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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