Correlation Between CXApp and DatChat Series

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

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

Diversification Opportunities for CXApp and DatChat Series

-0.08

Correlation Coefficient

CXApp  DatChat Series

Good diversification

The 3 months correlation between CXApp and DatChat is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CXApp Inc and DatChat Series A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DatChat Series A 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 DatChat Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DatChat Series A has no effect on the direction of CXApp i.e., CXApp and DatChat Series go up and down completely randomly.

Pair Corralation between CXApp and DatChat Series

Assuming the 90 days horizon CXApp Inc is expected to generate 0.73 times more return on investment than DatChat Series. However, CXApp Inc is 1.37 times less risky than DatChat Series. It trades about 0.1 of its potential returns per unit of risk. DatChat Series A is currently generating about -0.06 per unit of risk. If you would invest  7.28  in CXApp Inc on May 19, 2025 and sell it today you would earn a total of  2.72  from holding CXApp Inc or generate 37.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

CXApp Inc  vs.  DatChat Series A

CXApp Inc

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CXApp Inc are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain forward indicators, CXApp showed solid returns over the last few months and may actually be approaching a breakup point.

DatChat Series A

Risk-Adjusted Performance

Weakest

Over the last 90 days DatChat Series A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with CXApp and DatChat Series

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

The idea behind CXApp Inc and DatChat Series A 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.