Correlation Between AirIQ and Global Arena

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

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

Diversification Opportunities for AirIQ and Global Arena

0.0

Correlation Coefficient

AirIQ  Global Arena

Pay attention - limited upside

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

Pair Corralation between AirIQ and Global Arena

If you would invest (100.00) in Global Arena Holding on December 4, 2024 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

AirIQ Inc  vs.  Global Arena Holding

AirIQ Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days AirIQ Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with AirIQ and Global Arena

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

The idea behind AirIQ Inc and Global Arena Holding 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.