Correlation Between Ark Restaurants and Trump Media
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Trump Media 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 Trump Media 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 Trump Media Technology, you can compare the effects of market volatilities on Ark Restaurants and Trump Media 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 Trump Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Trump Media.
Diversification Opportunities for Ark Restaurants and Trump Media
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ark and Trump is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Trump Media Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trump Media Technology 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 Trump Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trump Media Technology has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Trump Media go up and down completely randomly.
Pair Corralation between Ark Restaurants and Trump Media
Given the investment horizon of 90 days Ark Restaurants Corp is expected to under-perform the Trump Media. In addition to that, Ark Restaurants is 1.4 times more volatile than Trump Media Technology. It trades about -0.21 of its total potential returns per unit of risk. Trump Media Technology is currently generating about 0.05 per unit of volatility. If you would invest 2,030 in Trump Media Technology on December 4, 2024 and sell it today you would earn a total of 31.00 from holding Trump Media Technology or generate 1.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ark Restaurants Corp vs. Trump Media Technology
Performance |
| Timeline |
| Ark Restaurants Corp |
| Trump Media Technology |
Ark Restaurants and Trump Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and Trump Media
The main advantage of trading using opposite Ark Restaurants and Trump Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, Trump Media 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 Trump Media will offset losses from the drop in Trump Media'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 |
| Trump Media vs. Orion Office Reit | Trump Media vs. Volaris | Trump Media vs. Bassett Furniture Industries | Trump Media vs. Allegiant Travel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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