Correlation Between Ark Restaurants and Payoneer Global

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

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

Diversification Opportunities for Ark Restaurants and Payoneer Global

0.67

Correlation Coefficient

Ark Restaurants  Payoneer Global

Poor diversification

The 3 months correlation between Ark and Payoneer is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Payoneer Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payoneer Global and Ark Restaurants 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 Restaurants Corp are associated (or correlated) with Payoneer Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payoneer Global has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Payoneer Global go up and down completely randomly.

Pair Corralation between Ark Restaurants and Payoneer Global

Given the investment horizon of 90 days Ark Restaurants Corp is expected to generate 1.39 times more return on investment than Payoneer Global. However, Ark Restaurants is 1.39 times more volatile than Payoneer Global. It trades about -0.03 of its potential returns per unit of risk. Payoneer Global is currently generating about -0.11 per unit of risk. If you would invest  1,149  in Ark Restaurants Corp on December 27, 2024 and sell it today you would lose (139.00) from holding Ark Restaurants Corp or give up 12.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Ark Restaurants Corp  vs.  Payoneer Global

Ark Restaurants Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ark Restaurants Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest inconsistent performance, the Stock's forward-looking signals remain invariable and the latest agitation on Wall Street may also be a sign of long-running gains for the enterprise retail investors.

Payoneer Global

Risk-Adjusted Performance

Very Weak

Over the last 90 days Payoneer Global has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Ark Restaurants and Payoneer Global

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

The idea behind Ark Restaurants Corp and Payoneer Global 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.