Correlation Between Array Digital and Marcus

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

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

Diversification Opportunities for Array Digital and Marcus

-0.71

Correlation Coefficient

Array Digital  Marcus

Pay attention - limited upside

The 3 months correlation between Array and Marcus is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Array Digital Infrastructure, and Marcus in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marcus and Array Digital 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 Array Digital Infrastructure, are associated (or correlated) with Marcus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marcus has no effect on the direction of Array Digital i.e., Array Digital and Marcus go up and down completely randomly.

Pair Corralation between Array Digital and Marcus

Allowing for the 90-day total investment horizon Array Digital Infrastructure, is expected to generate 0.85 times more return on investment than Marcus. However, Array Digital Infrastructure, is 1.18 times less risky than Marcus. It trades about 0.19 of its potential returns per unit of risk. Marcus is currently generating about -0.13 per unit of risk. If you would invest  4,380  in Array Digital Infrastructure, on May 28, 2025 and sell it today you would earn a total of  965.00  from holding Array Digital Infrastructure, or generate 22.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Array Digital Infrastructure,  vs.  Marcus

Array Digital Infras

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Array Digital Infrastructure, are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Marcus

Risk-Adjusted Performance

Weakest

Over the last 90 days Marcus 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 fundamental indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Array Digital and Marcus

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

The idea behind Array Digital Infrastructure, and Marcus 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.