Correlation Between ARK Autonomous and CN

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

By analyzing existing cross correlation between ARK Autonomous Technology and CN, you can compare the effects of market volatilities on ARK Autonomous and CN 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 ARK Autonomous with a short position of CN. Check out your portfolio center. Please also check ongoing floating volatility patterns of ARK Autonomous and CN.

Diversification Opportunities for ARK Autonomous and CN

0.0

Correlation Coefficient

ARK Autonomous  CN

Pay attention - limited upside

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

Pair Corralation between ARK Autonomous and CN

If you would invest (100.00) in CN on December 19, 2024 and sell it today you would earn a total of  100.00  from holding CN 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

ARK Autonomous Technology  vs.  CN

ARK Autonomous Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days ARK Autonomous Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Etf's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the ETF retail investors.

CN

Risk-Adjusted Performance

Very Weak

Over the last 90 days CN has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, CN is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with ARK Autonomous and CN

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

The idea behind ARK Autonomous Technology and CN 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.