Correlation Between Waldencast Acquisition and ARHT Media

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

By analyzing existing cross correlation between Waldencast Acquisition Corp and ARHT Media, you can compare the effects of market volatilities on Waldencast Acquisition and ARHT Media 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 Waldencast Acquisition with a short position of ARHT Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Waldencast Acquisition and ARHT Media.

Diversification Opportunities for Waldencast Acquisition and ARHT Media

0.0

Correlation Coefficient

Waldencast Acquisition  ARHT Media

Pay attention - limited upside

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

Pair Corralation between Waldencast Acquisition and ARHT Media

If you would invest  1.39  in ARHT Media on December 29, 2024 and sell it today you would earn a total of  0.00  from holding ARHT Media or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	54.1%
Values	Daily Returns

Waldencast Acquisition Corp  vs.  ARHT Media

Waldencast Acquisition

Risk-Adjusted Performance

Very Weak

Over the last 90 days Waldencast Acquisition Corp 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 essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ARHT Media

Risk-Adjusted Performance

Very Weak

Over the last 90 days ARHT Media has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, ARHT Media is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Waldencast Acquisition and ARHT Media

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

The idea behind Waldencast Acquisition Corp and ARHT Media 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.