Correlation Between Ai Media and Arn Media

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

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

Diversification Opportunities for Ai Media and Arn Media

0.89

Correlation Coefficient

Ai Media  Arn Media

Very poor diversification

The 3 months correlation between AIM and Arn is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ai Media Technologies and Arn Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arn Media and Ai 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 Ai Media Technologies are associated (or correlated) with Arn Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arn Media has no effect on the direction of Ai Media i.e., Ai Media and Arn Media go up and down completely randomly.

Pair Corralation between Ai Media and Arn Media

Assuming the 90 days trading horizon Ai Media Technologies is expected to under-perform the Arn Media. In addition to that, Ai Media is 1.72 times more volatile than Arn Media. It trades about -0.12 of its total potential returns per unit of risk. Arn Media is currently generating about -0.18 per unit of volatility. If you would invest  60.00  in Arn Media on April 4, 2025 and sell it today you would lose (13.00) from holding Arn Media or give up 21.67% of portfolio value over 90 days.

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

Ai Media Technologies  vs.  Arn Media

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.

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.

Pair Trading with Ai Media and Arn Media

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

The idea behind Ai Media Technologies and Arn Media 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.