Correlation Between PlayAGS and Ark Restaurants
Can any of the company-specific risk be diversified away by investing in both PlayAGS 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 PlayAGS and Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PlayAGS and Ark Restaurants Corp, you can compare the effects of market volatilities on PlayAGS 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 PlayAGS with a short position of Ark Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of PlayAGS and Ark Restaurants.
Diversification Opportunities for PlayAGS and Ark Restaurants
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between PlayAGS and Ark is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding PlayAGS 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 PlayAGS 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 PlayAGS 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 PlayAGS i.e., PlayAGS and Ark Restaurants go up and down completely randomly.
Pair Corralation between PlayAGS and Ark Restaurants
Considering the 90-day investment horizon PlayAGS is expected to generate 7.8 times less return on investment than Ark Restaurants. But when comparing it to its historical volatility, PlayAGS is 12.74 times less risky than Ark Restaurants. It trades about 0.34 of its potential returns per unit of risk. Ark Restaurants Corp is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Ark Restaurants Corp on October 25, 2024 and sell it today you would earn a total of 260.00 from holding Ark Restaurants Corp or generate 23.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PlayAGS vs. Ark Restaurants Corp
Performance |
| Timeline |
| PlayAGS |
| Ark Restaurants Corp |
PlayAGS and Ark Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PlayAGS and Ark Restaurants
The main advantage of trading using opposite PlayAGS and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PlayAGS 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.| PlayAGS vs. Light Wonder | PlayAGS vs. Everi Holdings | PlayAGS vs. Inspired Entertainment | PlayAGS vs. International Game Technology |
| Ark Restaurants vs. Nathans Famous | Ark Restaurants vs. Flanigans Enterprises | Ark Restaurants vs. Good Times Restaurants | Ark Restaurants vs. Auburn National Bancorporation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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