Correlation Between Arena Group and Match

Can any of the company-specific risk be diversified away by investing in both Arena Group and Match 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 Match 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 Match Group, you can compare the effects of market volatilities on Arena Group and Match 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 Match. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arena Group and Match.

Diversification Opportunities for Arena Group and Match

-0.18

Correlation Coefficient

Arena Group  Match

Good diversification

The 3 months correlation between Arena and Match is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Arena Group Holdings and Match Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Match Group 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 Match. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Match Group has no effect on the direction of Arena Group i.e., Arena Group and Match go up and down completely randomly.

Pair Corralation between Arena Group and Match

Given the investment horizon of 90 days Arena Group Holdings is expected to generate 4.43 times more return on investment than Match. However, Arena Group is 4.43 times more volatile than Match Group. It trades about 0.1 of its potential returns per unit of risk. Match Group is currently generating about 0.11 per unit of risk. If you would invest  523.00  in Arena Group Holdings on May 6, 2025 and sell it today you would earn a total of  184.00  from holding Arena Group Holdings or generate 35.18% return on investment over 90 days.

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

Arena Group Holdings  vs.  Match Group

Arena Group Holdings

Risk-Adjusted Performance

OK

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.

Match Group

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Match Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain fundamental indicators, Match demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Arena Group and Match

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

The idea behind Arena Group Holdings and Match Group 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.