Correlation Between Redwire Corp and CXApp

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

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

Diversification Opportunities for Redwire Corp and CXApp

0.87

Correlation Coefficient

Redwire Corp  CXApp

Very poor diversification

The 3 months correlation between Redwire and CXApp is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Redwire Corp and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Redwire Corp 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 Redwire Corp are associated (or correlated) with CXApp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CXApp Inc has no effect on the direction of Redwire Corp i.e., Redwire Corp and CXApp go up and down completely randomly.

Pair Corralation between Redwire Corp and CXApp

Considering the 90-day investment horizon Redwire Corp is expected to generate 0.99 times more return on investment than CXApp. However, Redwire Corp is 1.01 times less risky than CXApp. It trades about 0.0 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.07 per unit of risk. If you would invest  845.00  in Redwire Corp on September 11, 2025 and sell it today you would lose (97.00) from holding Redwire Corp or give up 11.48% of portfolio value over 90 days.

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

Redwire Corp  vs.  CXApp Inc

Redwire Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Redwire Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, Redwire Corp is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

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 January 2026. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Redwire Corp and CXApp

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

The idea behind Redwire Corp and CXApp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.