Correlation Between Armada Mercantile and Crypto

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

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

Diversification Opportunities for Armada Mercantile and Crypto

-0.44

Correlation Coefficient

Armada Mercantile  Crypto

Very good diversification

The 3 months correlation between Armada and Crypto is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Armada Mercantile and Crypto Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Crypto and Armada Mercantile 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 Armada Mercantile are associated (or correlated) with Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Crypto has no effect on the direction of Armada Mercantile i.e., Armada Mercantile and Crypto go up and down completely randomly.

Pair Corralation between Armada Mercantile and Crypto

Assuming the 90 days horizon Armada Mercantile is expected to generate 3.46 times less return on investment than Crypto. But when comparing it to its historical volatility, Armada Mercantile is 3.15 times less risky than Crypto. It trades about 0.04 of its potential returns per unit of risk. Crypto Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  0.40  in Crypto Co on September 12, 2025 and sell it today you would lose (0.10) from holding Crypto Co or give up 25.0% of portfolio value over 90 days.

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

Armada Mercantile  vs.  Crypto Co

Armada Mercantile

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Armada Mercantile are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Armada Mercantile may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Crypto

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Crypto Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly inconsistent fundamental indicators, Crypto showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Armada Mercantile and Crypto

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

The idea behind Armada Mercantile and Crypto Co 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.