Correlation Between Arena Group and Broke Out

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

By analyzing existing cross correlation between Arena Group Holdings and Broke Out, you can compare the effects of market volatilities on Arena Group and Broke Out 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 Arena Group with a short position of Broke Out. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arena Group and Broke Out.

Diversification Opportunities for Arena Group and Broke Out

0.0

Correlation Coefficient

Arena Group  Broke Out

Pay attention - limited upside

The 3 months correlation between Arena and Broke is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arena Group Holdings and Broke Out in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broke Out and Arena Group 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 Arena Group Holdings are associated (or correlated) with Broke Out. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broke Out has no effect on the direction of Arena Group i.e., Arena Group and Broke Out go up and down completely randomly.

Pair Corralation between Arena Group and Broke Out

If you would invest  510.00  in Arena Group Holdings on May 7, 2025 and sell it today you would earn a total of  168.00  from holding Arena Group Holdings or generate 32.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Arena Group Holdings  vs.  Broke Out

Arena Group Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Arena Group Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very inconsistent technical and fundamental indicators, Arena Group displayed solid returns over the last few months and may actually be approaching a breakup point.

Broke Out

Risk-Adjusted Performance

Weakest

Over the last 90 days Broke Out has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, Broke Out is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Arena Group and Broke Out

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

The idea behind Arena Group Holdings and Broke Out 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.