Correlation Between ARC Document and Samfine Creation

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

By analyzing existing cross correlation between ARC Document Solutions and Samfine Creation Holdings, you can compare the effects of market volatilities on ARC Document and Samfine Creation 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 ARC Document with a short position of Samfine Creation. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARC Document and Samfine Creation.

Diversification Opportunities for ARC Document and Samfine Creation

0.0

Correlation Coefficient

ARC Document  Samfine Creation

Pay attention - limited upside

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

Pair Corralation between ARC Document and Samfine Creation

If you would invest (100.00) in ARC Document Solutions on December 28, 2024 and sell it today you would earn a total of  100.00  from holding ARC Document Solutions 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

ARC Document Solutions  vs.  Samfine Creation Holdings

ARC Document Solutions

Risk-Adjusted Performance

Very Weak

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

Samfine Creation Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Samfine Creation Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical 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.

Pair Trading with ARC Document and Samfine Creation

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

The idea behind ARC Document Solutions and Samfine Creation Holdings 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.

Check out your portfolio center.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.