Correlation Between Ark Restaurants and Autogrill SpA
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Autogrill SpA 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 Autogrill SpA 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 Autogrill SpA ADR, you can compare the effects of market volatilities on Ark Restaurants and Autogrill SpA 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 Autogrill SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Autogrill SpA.
Diversification Opportunities for Ark Restaurants and Autogrill SpA
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ark and Autogrill is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Autogrill SpA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autogrill SpA ADR 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 Autogrill SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autogrill SpA ADR has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Autogrill SpA go up and down completely randomly.
Pair Corralation between Ark Restaurants and Autogrill SpA
If you would invest 1,053 in Ark Restaurants Corp on September 5, 2024 and sell it today you would earn a total of 17.00 from holding Ark Restaurants Corp or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Ark Restaurants Corp vs. Autogrill SpA ADR
Performance |
| Timeline |
| Ark Restaurants Corp |
| Autogrill SpA ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ark Restaurants and Autogrill SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and Autogrill SpA
The main advantage of trading using opposite Ark Restaurants and Autogrill SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, Autogrill SpA 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 Autogrill SpA will offset losses from the drop in Autogrill SpA's long position.| Ark Restaurants vs. Hyatt Hotels | Ark Restaurants vs. Smart Share Global | Ark Restaurants vs. Sweetgreen | Ark Restaurants vs. Wyndham Hotels Resorts |
| Autogrill SpA vs. Marstons PLC | Autogrill SpA vs. Marstons PLC | Autogrill SpA vs. Bagger Daves Burger | Autogrill SpA vs. Alsea SAB de |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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