Correlation Between Rocket Lab and CXApp

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

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

Diversification Opportunities for Rocket Lab and CXApp

-0.29

Correlation Coefficient

Rocket Lab  CXApp

Very good diversification

The 3 months correlation between Rocket and CXApp is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Rocket Lab USA and CXApp Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CXApp Inc and Rocket Lab 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 Rocket Lab USA 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 Rocket Lab i.e., Rocket Lab and CXApp go up and down completely randomly.

Pair Corralation between Rocket Lab and CXApp

Given the investment horizon of 90 days Rocket Lab USA is expected to generate 0.92 times more return on investment than CXApp. However, Rocket Lab USA is 1.09 times less risky than CXApp. It trades about 0.26 of its potential returns per unit of risk. CXApp Inc is currently generating about -0.04 per unit of risk. If you would invest  2,248  in Rocket Lab USA on May 3, 2025 and sell it today you would earn a total of  2,344  from holding Rocket Lab USA or generate 104.27% return on investment over 90 days.

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

Rocket Lab USA  vs.  CXApp Inc

Rocket Lab USA

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Rocket Lab USA are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady essential indicators, Rocket Lab sustained solid returns over the last few months and may actually be approaching a breakup point.

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 inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in September 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Rocket Lab and CXApp

The main advantage of trading using opposite Rocket Lab and CXApp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocket Lab 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 Rocket Lab USA 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.