Correlation Between 04685A2Z3 and Ark Restaurants

Can any of the company-specific risk be diversified away by investing in both 04685A2Z3 and Ark Restaurants 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 04685A2Z3 and Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between ATH 1608 29 JUN 26 and Ark Restaurants Corp, you can compare the effects of market volatilities on 04685A2Z3 and Ark Restaurants 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 04685A2Z3 with a short position of Ark Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of 04685A2Z3 and Ark Restaurants.

Diversification Opportunities for 04685A2Z3 and Ark Restaurants

-0.02

Correlation Coefficient

04685A2Z3  Ark Restaurants

Good diversification

The 3 months correlation between 04685A2Z3 and Ark is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding ATH 1608 29 JUN 26 and Ark Restaurants Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ark Restaurants Corp and 04685A2Z3 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 ATH 1608 29 JUN 26 are associated (or correlated) with Ark Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ark Restaurants Corp has no effect on the direction of 04685A2Z3 i.e., 04685A2Z3 and Ark Restaurants go up and down completely randomly.

Pair Corralation between 04685A2Z3 and Ark Restaurants

Assuming the 90 days trading horizon ATH 1608 29 JUN 26 is expected to generate 0.43 times more return on investment than Ark Restaurants. However, ATH 1608 29 JUN 26 is 2.32 times less risky than Ark Restaurants. It trades about 0.01 of its potential returns per unit of risk. Ark Restaurants Corp is currently generating about -0.03 per unit of risk. If you would invest  8,741  in ATH 1608 29 JUN 26 on October 4, 2024 and sell it today you would earn a total of  49.00  from holding ATH 1608 29 JUN 26 or generate 0.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	44.14%
Values	Daily Returns

ATH 1608 29 JUN 26  vs.  Ark Restaurants Corp

ATH 1608 29

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATH 1608 29 JUN 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ATH 1608 29 JUN 26 investors.

Ark Restaurants Corp

Risk-Adjusted Performance

0 of 100

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 relatively invariable forward-looking signals, Ark Restaurants is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with 04685A2Z3 and Ark Restaurants

The main advantage of trading using opposite 04685A2Z3 and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 04685A2Z3 position performs unexpectedly, Ark Restaurants 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 Ark Restaurants will offset losses from the drop in Ark Restaurants' long position.

The idea behind ATH 1608 29 JUN 26 and Ark Restaurants Corp 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.