Correlation Between Sequans Communications and Arrive AI

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

By analyzing existing cross correlation between Sequans Communications SA and Arrive AI, you can compare the effects of market volatilities on Sequans Communications and Arrive AI 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 Sequans Communications with a short position of Arrive AI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sequans Communications and Arrive AI.

Diversification Opportunities for Sequans Communications and Arrive AI

-0.13

Correlation Coefficient

Sequans Communications  Arrive AI

Good diversification

The 3 months correlation between Sequans and Arrive is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Sequans Communications SA and Arrive AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrive AI and Sequans Communications 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 Sequans Communications SA are associated (or correlated) with Arrive AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrive AI has no effect on the direction of Sequans Communications i.e., Sequans Communications and Arrive AI go up and down completely randomly.

Pair Corralation between Sequans Communications and Arrive AI

Given the investment horizon of 90 days Sequans Communications SA is expected to under-perform the Arrive AI. But the stock apears to be less risky and, when comparing its historical volatility, Sequans Communications SA is 1.96 times less risky than Arrive AI. The stock trades about -0.11 of its potential returns per unit of risk. The Arrive AI is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  439.00  in Arrive AI on September 2, 2025 and sell it today you would lose (62.00) from holding Arrive AI or give up 14.12% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Sequans Communications SA  vs.  Arrive AI

Sequans Communications

Risk-Adjusted Performance

Weakest

Over the last 90 days Sequans Communications SA 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 comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Arrive AI

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Arrive AI are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Arrive AI may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Sequans Communications and Arrive AI

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

The idea behind Sequans Communications SA and Arrive AI 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.

Check out your portfolio center.

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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.