Correlation Between Arko Corp and Original Bark
Can any of the company-specific risk be diversified away by investing in both Arko Corp and Original Bark 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 Arko Corp and Original Bark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arko Corp and Original Bark Co, you can compare the effects of market volatilities on Arko Corp and Original Bark 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 Arko Corp with a short position of Original Bark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arko Corp and Original Bark.
Diversification Opportunities for Arko Corp and Original Bark
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Arko and Original is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Arko Corp and Original Bark Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Original Bark and Arko Corp 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 Arko Corp are associated (or correlated) with Original Bark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Original Bark has no effect on the direction of Arko Corp i.e., Arko Corp and Original Bark go up and down completely randomly.
Pair Corralation between Arko Corp and Original Bark
Given the investment horizon of 90 days Arko Corp is expected to under-perform the Original Bark. But the stock apears to be less risky and, when comparing its historical volatility, Arko Corp is 1.78 times less risky than Original Bark. The stock trades about -0.03 of its potential returns per unit of risk. The Original Bark Co is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 149.00 in Original Bark Co on August 24, 2024 and sell it today you would earn a total of 19.00 from holding Original Bark Co or generate 12.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Arko Corp vs. Original Bark Co
Performance |
| Timeline |
| Arko Corp |
| Original Bark |
Arko Corp and Original Bark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arko Corp and Original Bark
The main advantage of trading using opposite Arko Corp and Original Bark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arko Corp position performs unexpectedly, Original Bark 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 Original Bark will offset losses from the drop in Original Bark's long position.| Arko Corp vs. AutoZone | Arko Corp vs. Best Buy Co | Arko Corp vs. Dicks Sporting Goods | Arko Corp vs. Advance Auto Parts |
| Original Bark vs. AutoZone | Original Bark vs. Best Buy Co | Original Bark vs. Dicks Sporting Goods | Original Bark vs. Advance Auto Parts |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |