ARM vs. SOUN

Last updated Jun 3, 2026

ARM (Arm Holdings plc American Depositary Shares) and SOUN (SoundHound AI Inc) are both stocks. Both are in the Technology sector — ARM in Semiconductors, SOUN in Software - Application. Over the past year, ARM returned 219.47% vs -11.53% for SOUN. At a 0.40 correlation, their price movements are largely independent.

Performance

ARM vs. SOUN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Arm Holdings plc American Depositary Shares (ARM) and SoundHound AI Inc (SOUN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ARM achieves a 268.41% return, which is significantly higher than SOUN's -11.53% return.

ARM

• 1D: -1.50%
• 1M: 90.70%
• YTD: 268.41%
• 6M: 195.07%
• 1Y: 219.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

SOUN

• 1D: -4.65%
• 1M: -7.74%
• YTD: -11.53%
• 6M: -21.39%
• 1Y: -11.53%
• 3Y*: 44.89%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ARM vs. SOUN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
ARM Arm Holdings plc American Depositary Shares	268.41%	-11.39%	64.16%	18.17%
SOUN SoundHound AI Inc	-11.53%	-49.75%	835.85%	-1.40%

Correlation

The correlation between ARM and SOUN is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (All Time) Calculated using the full available price history since Sep 15, 2023	0.40

Fundamentals

Market Cap ARM : $430.09B SOUN : $2.99B
EPS ARM : $0.85 SOUN : -$0.43
PS Ratio ARM : 87.40 SOUN : 18.81
PB Ratio ARM : 51.91 SOUN : 6.48
Total Revenue (TTM) ARM : $4.92B SOUN : $183.99M
Gross Profit (TTM) ARM : $4.66B SOUN : $69.84M
EBITDA (TTM) ARM : $1.37B SOUN : -$124.47M

Return for Risk

ARM vs. SOUN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ARM

ARM Risk / Return Rank: 92
ARM Sharpe Ratio Rank: 96
ARM Sortino Ratio Rank: 93
ARM Omega Ratio Rank: 92
ARM Calmar Ratio Rank: 92
ARM Martin Ratio Rank: 88

SOUN

SOUN Risk / Return Rank: 36
SOUN Sharpe Ratio Rank: 34
SOUN Sortino Ratio Rank: 38
SOUN Omega Ratio Rank: 36
SOUN Calmar Ratio Rank: 34
SOUN Martin Ratio Rank: 35

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ARM vs. SOUN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Arm Holdings plc American Depositary Shares (ARM) and SoundHound AI Inc (SOUN). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ARM	SOUN	Difference
Sharpe ratio Return per unit of total volatility	3.39	-0.14	+3.53
Sortino ratio Return per unit of downside risk	3.80	0.38	+3.42
Omega ratio Gain probability vs. loss probability	1.48	1.04	+0.44
Calmar ratio Return relative to maximum drawdown	5.39	-0.18	+5.56
Martin ratio Return relative to average drawdown	10.70	-0.29	+10.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ARM vs. SOUN - Sharpe Ratio Comparison

The current ARM Sharpe Ratio is 3.39, which is higher than the SOUN Sharpe Ratio of -0.14. The chart below compares the historical Sharpe Ratios of ARM and SOUN, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ARM	SOUN	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.39	-0.14	+3.53
Sharpe Ratio (All Time) Calculated using the full available price history	1.30	0.03	+1.27

Drawdowns

ARM vs. SOUN - Drawdown Comparison

The maximum ARM drawdown since its inception was -53.97%, smaller than the maximum SOUN drawdown of -93.55%. Use the drawdown chart below to compare losses from any high point for ARM and SOUN.

Drawdown Indicators

	ARM	SOUN	Difference
Max Drawdown Largest peak-to-trough decline	-53.97%	-93.55%	+39.58%
Max Drawdown (1Y) Largest decline over 1 year	-41.47%	-72.43%	+30.96%
Max Drawdown (3Y) Largest decline over 3 years	—	-75.65%	—
Current Drawdown Current decline from peak	-1.50%	-63.60%	+62.10%
Average Drawdown Average peak-to-trough decline	-21.45%	-66.95%	+45.50%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.88%	43.77%	-22.89%

Volatility

ARM vs. SOUN - Volatility Comparison

Arm Holdings plc American Depositary Shares (ARM) has a higher volatility of 33.78% compared to SoundHound AI Inc (SOUN) at 16.39%. This indicates that ARM's price experiences larger fluctuations and is considered to be riskier than SOUN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ARM	SOUN	Difference
Volatility (1M) Calculated over the trailing 1-month period	33.78%	16.39%	+17.39%
Volatility (6M) Calculated over the trailing 6-month period	53.31%	51.48%	+1.83%
Volatility (1Y) Calculated over the trailing 1-year period	65.22%	80.08%	-14.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	75.41%	136.48%	-61.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	75.41%	136.48%	-61.07%

Dividends

ARM vs. SOUN - Dividend Comparison

Neither ARM nor SOUN has paid dividends to shareholders.

Tickers have no history of dividend payments

Financials

Frequently Asked Questions

Can I hold both ARM and SOUN in my portfolio?

ARM and SOUN have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ARM or SOUN?

ARM has higher volatility (33.78%) compared to SOUN (16.39%). In terms of maximum drawdown, ARM dropped -53.97% vs SOUN's -93.55%.

Which has better risk-adjusted returns?

ARM currently has the higher Sharpe Ratio (3.39 vs -0.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.