Correlation Between Arn Media and Ai Media

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

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

Diversification Opportunities for Arn Media and Ai Media

0.75

Correlation Coefficient

Arn Media  Ai Media

Poor diversification

The 3 months correlation between Arn and AIM is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Arn Media and Ai Media Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ai Media Technologies and Arn Media 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 Arn Media are associated (or correlated) with Ai Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ai Media Technologies has no effect on the direction of Arn Media i.e., Arn Media and Ai Media go up and down completely randomly.

Pair Corralation between Arn Media and Ai Media

Assuming the 90 days trading horizon Arn Media is expected to under-perform the Ai Media. But the stock apears to be less risky and, when comparing its historical volatility, Arn Media is 1.85 times less risky than Ai Media. The stock trades about -0.15 of its potential returns per unit of risk. The Ai Media Technologies is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  75.00  in Ai Media Technologies on April 25, 2025 and sell it today you would lose (14.00) from holding Ai Media Technologies or give up 18.67% of portfolio value over 90 days.

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

Arn Media  vs.  Ai Media Technologies

Arn Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days Arn Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Ai Media Technologies

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ai Media Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's primary indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Arn Media and Ai Media

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

The idea behind Arn Media and Ai Media 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.