Correlation Between CXApp and NetSol Technologies

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

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

Diversification Opportunities for CXApp and NetSol Technologies

-0.12

Correlation Coefficient

CXApp  NetSol Technologies

Good diversification

The 3 months correlation between CXApp and NetSol is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and NetSol Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NetSol Technologies 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 NetSol Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NetSol Technologies has no effect on the direction of CXApp i.e., CXApp and NetSol Technologies go up and down completely randomly.

Pair Corralation between CXApp and NetSol Technologies

Given the investment horizon of 90 days CXApp Inc is expected to under-perform the NetSol Technologies. In addition to that, CXApp is 1.65 times more volatile than NetSol Technologies. It trades about -0.01 of its total potential returns per unit of risk. NetSol Technologies is currently generating about 0.31 per unit of volatility. If you would invest  248.00  in NetSol Technologies on April 30, 2025 and sell it today you would earn a total of  196.00  from holding NetSol Technologies or generate 79.03% 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.  NetSol Technologies

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.

NetSol Technologies

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in NetSol Technologies are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, NetSol Technologies disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CXApp and NetSol Technologies

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

The idea behind CXApp Inc and NetSol Technologies 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.