Correlation Between Arbe Robotics and Shift4 Payments

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Arbe Robotics and Shift4 Payments 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 Arbe Robotics and Shift4 Payments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arbe Robotics and Shift4 Payments, you can compare the effects of market volatilities on Arbe Robotics and Shift4 Payments 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 Arbe Robotics with a short position of Shift4 Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arbe Robotics and Shift4 Payments.

Diversification Opportunities for Arbe Robotics and Shift4 Payments

0.78
  Correlation Coefficient

Poor diversification

The 3 months correlation between Arbe Robotics and Shift4 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Arbe Robotics and Shift4 Payments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shift4 Payments and Arbe Robotics 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 Arbe Robotics are associated (or correlated) with Shift4 Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shift4 Payments has no effect on the direction of Arbe Robotics i.e., Arbe Robotics and Shift4 Payments go up and down completely randomly.

Pair Corralation between Arbe Robotics and Shift4 Payments

Given the investment horizon of 90 days Arbe Robotics is expected to generate 0.96 times more return on investment than Shift4 Payments. However, Arbe Robotics is 1.04 times less risky than Shift4 Payments. It trades about -0.02 of its potential returns per unit of risk. Shift4 Payments is currently generating about -0.03 per unit of risk. If you would invest  1,003  in Arbe Robotics on July 2, 2022 and sell it today you would lose (403.00)  from holding Arbe Robotics or give up 40.18% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Arbe Robotics  vs.  Shift4 Payments

 Performance (%) 
       Timeline  
Arbe Robotics 
Arbe Robotics Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Arbe Robotics are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather sluggish fundamental drivers, Arbe Robotics may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Arbe Robotics Price Channel

Shift4 Payments 
Shift4 Performance
11 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Shift4 Payments are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Shift4 Payments reported solid returns over the last few months and may actually be approaching a breakup point.

Shift4 Price Channel

Arbe Robotics and Shift4 Payments Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Arbe Robotics and Shift4 Payments

The main advantage of trading using opposite Arbe Robotics and Shift4 Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arbe Robotics position performs unexpectedly, Shift4 Payments 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 Shift4 Payments will offset losses from the drop in Shift4 Payments' long position.
Arbe Robotics vs. Humana Inc
Arbe Robotics vs. Omega Healthcare Investors
Arbe Robotics vs. National Health Investors
Arbe Robotics vs. Elevance Health
The idea behind Arbe Robotics and Shift4 Payments 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.
Shift4 Payments vs. Microsoft Corp
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go