Correlation Between Ark Restaurants and Everi Holdings
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Everi Holdings 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 Everi Holdings 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 Everi Holdings, you can compare the effects of market volatilities on Ark Restaurants and Everi Holdings 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 Everi Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Everi Holdings.
Diversification Opportunities for Ark Restaurants and Everi Holdings
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ark and Everi is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Everi Holdings go up and down completely randomly.
Pair Corralation between Ark Restaurants and Everi Holdings
Given the investment horizon of 90 days Ark Restaurants Corp is expected to under-perform the Everi Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Ark Restaurants Corp is 1.34 times less risky than Everi Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Everi Holdings is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,510 in Everi Holdings on August 27, 2024 and sell it today you would lose (166.00) from holding Everi Holdings or give up 10.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Ark Restaurants Corp vs. Everi Holdings
Performance |
| Timeline |
| Ark Restaurants Corp |
| Everi Holdings |
Ark Restaurants and Everi Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and Everi Holdings
The main advantage of trading using opposite Ark Restaurants and Everi Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, Everi Holdings 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 Everi Holdings will offset losses from the drop in Everi Holdings' long position.| Ark Restaurants vs. Nathans Famous | Ark Restaurants vs. Flanigans Enterprises | Ark Restaurants vs. Good Times Restaurants | Ark Restaurants vs. Auburn National Bancorporation |
| Everi Holdings vs. Accel Entertainment | Everi Holdings vs. Light Wonder | Everi Holdings vs. Inspired Entertainment | Everi Holdings vs. International Game Technology |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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