Correlation Between Array Digital and Mer Telemanagement

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Can any of the company-specific risk be diversified away by investing in both Array Digital and Mer Telemanagement 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 Array Digital and Mer Telemanagement into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Array Digital Infrastructure and Mer Telemanagement Solutions, you can compare the effects of market volatilities on Array Digital and Mer Telemanagement 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 Array Digital with a short position of Mer Telemanagement. Check out your portfolio center. Please also check ongoing floating volatility patterns of Array Digital and Mer Telemanagement.

Diversification Opportunities for Array Digital and Mer Telemanagement

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Array Digital and Mer Telemanagement

If you would invest  4,901  in Array Digital Infrastructure on October 16, 2025 and sell it today you would earn a total of  818.00  from holding Array Digital Infrastructure or generate 16.69% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Array Digital Infrastructure  vs.  Mer Telemanagement Solutions

 Performance 
       Timeline  
Array Digital Infras 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Array Digital Infrastructure are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental indicators, Array Digital exhibited solid returns over the last few months and may actually be approaching a breakup point.
Mer Telemanagement 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Mer Telemanagement Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Mer Telemanagement is not utilizing all of its potentials. The recent stock price mess, may contribute to short-term losses for the institutional investors.

Array Digital and Mer Telemanagement Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Array Digital and Mer Telemanagement

The main advantage of trading using opposite Array Digital and Mer Telemanagement positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Array Digital position performs unexpectedly, Mer Telemanagement 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 Mer Telemanagement will offset losses from the drop in Mer Telemanagement's long position.
The idea behind Array Digital Infrastructure and Mer Telemanagement Solutions 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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