Correlation Between Ark Restaurants and SGHC
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and SGHC 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 SGHC 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 SGHC Limited, you can compare the effects of market volatilities on Ark Restaurants and SGHC 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 SGHC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and SGHC.
Diversification Opportunities for Ark Restaurants and SGHC
-0.82 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ark and SGHC is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and SGHC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGHC Limited 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 SGHC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGHC Limited has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and SGHC go up and down completely randomly.
Pair Corralation between Ark Restaurants and SGHC
Given the investment horizon of 90 days Ark Restaurants Corp is expected to under-perform the SGHC. But the stock apears to be less risky and, when comparing its historical volatility, Ark Restaurants Corp is 1.57 times less risky than SGHC. The stock trades about -0.04 of its potential returns per unit of risk. The SGHC Limited is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 283.00 in SGHC Limited on August 27, 2024 and sell it today you would earn a total of 325.00 from holding SGHC Limited or generate 114.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 98.59% |
| Values | Daily Returns |
Ark Restaurants Corp vs. SGHC Limited
Performance |
| Timeline |
| Ark Restaurants Corp |
| SGHC Limited |
Ark Restaurants and SGHC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and SGHC
The main advantage of trading using opposite Ark Restaurants and SGHC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, SGHC 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 SGHC will offset losses from the drop in SGHC'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 |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |