Correlation Between Global Arena and ARB IOT

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

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

Diversification Opportunities for Global Arena and ARB IOT

0.0

Correlation Coefficient

Global Arena  ARB IOT

Pay attention - limited upside

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

Pair Corralation between Global Arena and ARB IOT

If you would invest (100.00) in Global Arena Holding on May 6, 2025 and sell it today you would earn a total of  100.00  from holding Global Arena Holding or generate -100.0% return on investment over 90 days.

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

Global Arena Holding  vs.  ARB IOT Group

Global Arena Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Global Arena Holding has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Global Arena is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

ARB IOT Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days ARB IOT Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Global Arena and ARB IOT

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

The idea behind Global Arena Holding and ARB IOT 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.