Correlation Between Ark Restaurants and Granite City
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Granite City 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 Granite City 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 Granite City Food, you can compare the effects of market volatilities on Ark Restaurants and Granite City 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 Granite City. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Granite City.
Diversification Opportunities for Ark Restaurants and Granite City
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ark and Granite is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Granite City Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Granite City Food 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 Granite City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Granite City Food has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Granite City go up and down completely randomly.
Pair Corralation between Ark Restaurants and Granite City
If you would invest 0.01 in Granite City Food on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Granite City Food or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 7.95% |
| Values | Daily Returns |
Ark Restaurants Corp vs. Granite City Food
Performance |
| Timeline |
| Ark Restaurants Corp |
| Granite City Food |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ark Restaurants and Granite City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and Granite City
The main advantage of trading using opposite Ark Restaurants and Granite City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, Granite City 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 Granite City will offset losses from the drop in Granite City'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 |
| Granite City vs. Ark Restaurants Corp | Granite City vs. Noble Romans | Granite City vs. Nathans Famous | Granite City vs. Biglari Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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