Correlation Between Proficient Auto and Array Digital

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

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

Diversification Opportunities for Proficient Auto and Array Digital

0.22

Correlation Coefficient

Proficient Auto  Array Digital

Modest diversification

The 3 months correlation between Proficient and Array is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Proficient Auto Logistics, 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 Proficient Auto 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 Proficient Auto Logistics, 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 Proficient Auto i.e., Proficient Auto and Array Digital go up and down completely randomly.

Pair Corralation between Proficient Auto and Array Digital

Considering the 90-day investment horizon Proficient Auto is expected to generate 4.33 times less return on investment than Array Digital. In addition to that, Proficient Auto is 2.6 times more volatile than Array Digital Infrastructure,. It trades about 0.02 of its total potential returns per unit of risk. Array Digital Infrastructure, is currently generating about 0.2 per unit of volatility. If you would invest  4,360  in Array Digital Infrastructure, on June 3, 2025 and sell it today you would earn a total of  1,023  from holding Array Digital Infrastructure, or generate 23.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Proficient Auto Logistics,  vs.  Array Digital Infrastructure,

Proficient Auto Logi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Proficient Auto Logistics, are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Proficient Auto is not utilizing all of its potentials. The latest 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 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Proficient Auto and Array Digital

The main advantage of trading using opposite Proficient Auto and Array Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Proficient Auto 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 Proficient Auto Logistics, 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.