Correlation Between Ark Restaurants and Atec
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Atec 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 Atec 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 Atec Inc, you can compare the effects of market volatilities on Ark Restaurants and Atec 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 Atec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Atec.
Diversification Opportunities for Ark Restaurants and Atec
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ark and Atec is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Atec Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atec Inc 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 Atec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atec Inc has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Atec go up and down completely randomly.
Pair Corralation between Ark Restaurants and Atec
Given the investment horizon of 90 days Ark Restaurants is expected to generate 2.72 times less return on investment than Atec. In addition to that, Ark Restaurants is 1.41 times more volatile than Atec Inc. It trades about 0.02 of its total potential returns per unit of risk. Atec Inc is currently generating about 0.07 per unit of volatility. If you would invest 1,505 in Atec Inc on September 14, 2024 and sell it today you would earn a total of 650.00 from holding Atec Inc or generate 43.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.19% |
| Values | Daily Returns |
Ark Restaurants Corp vs. Atec Inc
Performance |
| Timeline |
| Ark Restaurants Corp |
| Atec Inc |
Ark Restaurants and Atec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and Atec
The main advantage of trading using opposite Ark Restaurants and Atec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, Atec 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 Atec will offset losses from the drop in Atec's long position.| Ark Restaurants vs. Nathans Famous | Ark Restaurants vs. Flanigans Enterprises | Ark Restaurants vs. Good Times Restaurants | Ark Restaurants vs. Auburn National Bancorporation |
| Atec vs. China Clean Energy | Atec vs. Amkor Technology | Atec vs. Stepstone Group | Atec vs. Everspin Technologies |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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