Correlation Between Crimson Wine and Array Digital

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

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

Diversification Opportunities for Crimson Wine and Array Digital

-0.18

Correlation Coefficient

Crimson Wine  Array Digital

Good diversification

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

Pair Corralation between Crimson Wine and Array Digital

Given the investment horizon of 90 days Crimson Wine is expected to under-perform the Array Digital. But the otc stock apears to be less risky and, when comparing its historical volatility, Crimson Wine is 1.74 times less risky than Array Digital. The otc stock trades about -0.01 of its potential returns per unit of risk. The Array Digital Infrastructure, is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  2,327  in Array Digital Infrastructure, on June 20, 2025 and sell it today you would earn a total of  2,643  from holding Array Digital Infrastructure, or generate 113.58% return on investment over 90 days.

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

Crimson Wine  vs.  Array Digital Infrastructure,

Crimson Wine

Risk-Adjusted Performance

Weakest

Over the last 90 days Crimson Wine has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent technical and fundamental indicators, Crimson Wine is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

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 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Crimson Wine and Array Digital

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

The idea behind Crimson Wine and Array Digital Infrastructure, 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 Stocks Directory module to find actively traded stocks across global markets.