Correlation Between Arrival and Nu Ride

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

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

Diversification Opportunities for Arrival and Nu Ride

0.0

Correlation Coefficient

Arrival  Nu Ride

Pay attention - limited upside

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

Pair Corralation between Arrival and Nu Ride

If you would invest  126.00  in Nu Ride on May 7, 2025 and sell it today you would earn a total of  16.00  from holding Nu Ride or generate 12.7% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Arrival  vs.  Nu Ride

Arrival

Risk-Adjusted Performance

Weakest

Over the last 90 days Arrival has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable essential indicators, Arrival is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Nu Ride

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Nu Ride are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating fundamental indicators, Nu Ride exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Arrival and Nu Ride

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

The idea behind Arrival and Nu Ride 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.