Correlation Between ProConcept Marketing and Armada Mercantile

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

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

Diversification Opportunities for ProConcept Marketing and Armada Mercantile

-0.27

Correlation Coefficient

ProConcept Marketing  Armada Mercantile

Very good diversification

The 3 months correlation between ProConcept and Armada is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding ProConcept Marketing Group and Armada Mercantile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Armada Mercantile and ProConcept Marketing 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 ProConcept Marketing Group are associated (or correlated) with Armada Mercantile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Armada Mercantile has no effect on the direction of ProConcept Marketing i.e., ProConcept Marketing and Armada Mercantile go up and down completely randomly.

Pair Corralation between ProConcept Marketing and Armada Mercantile

Given the investment horizon of 90 days ProConcept Marketing Group is expected to under-perform the Armada Mercantile. In addition to that, ProConcept Marketing is 5.53 times more volatile than Armada Mercantile. It trades about -0.02 of its total potential returns per unit of risk. Armada Mercantile is currently generating about 0.09 per unit of volatility. If you would invest  24.00  in Armada Mercantile on May 1, 2025 and sell it today you would earn a total of  6.00  from holding Armada Mercantile or generate 25.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

ProConcept Marketing Group  vs.  Armada Mercantile

ProConcept Marketing

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProConcept Marketing Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Armada Mercantile

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Armada Mercantile are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Armada Mercantile reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ProConcept Marketing and Armada Mercantile

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

The idea behind ProConcept Marketing Group and Armada Mercantile 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.