Correlation Between Arko Corp and Barnes Noble
Can any of the company-specific risk be diversified away by investing in both Arko Corp and Barnes Noble 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 Barnes Noble into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Arko Corp and Barnes Noble Education, you can compare the effects of market volatilities on Arko Corp and Barnes Noble 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 Barnes Noble. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arko Corp and Barnes Noble.
Diversification Opportunities for Arko Corp and Barnes Noble
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Arko and Barnes is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Arko Corp and Barnes Noble Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barnes Noble Education 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 Barnes Noble. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barnes Noble Education has no effect on the direction of Arko Corp i.e., Arko Corp and Barnes Noble go up and down completely randomly.
Pair Corralation between Arko Corp and Barnes Noble
Given the investment horizon of 90 days Arko Corp is expected to generate 2.2 times less return on investment than Barnes Noble. But when comparing it to its historical volatility, Arko Corp is 3.15 times less risky than Barnes Noble. It trades about 0.07 of its potential returns per unit of risk. Barnes Noble Education is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,017 in Barnes Noble Education on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Barnes Noble Education or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Arko Corp vs. Barnes Noble Education
Performance |
| Timeline |
| Arko Corp |
| Barnes Noble Education |
Arko Corp and Barnes Noble Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Arko Corp and Barnes Noble
The main advantage of trading using opposite Arko Corp and Barnes Noble positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arko Corp position performs unexpectedly, Barnes Noble 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 Barnes Noble will offset losses from the drop in Barnes Noble's long position.| Arko Corp vs. Murphy USA | Arko Corp vs. National Vision Holdings | Arko Corp vs. ODP Corp | Arko Corp vs. Genuine Parts Co |
| Barnes Noble vs. Sportsmans | Barnes Noble vs. MarineMax | Barnes Noble vs. Build A Bear Workshop | Barnes Noble vs. Leslies |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |