Correlation Between Ark Restaurants and YanGuFang International
Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and YanGuFang International 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 YanGuFang International 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 YanGuFang International Group, you can compare the effects of market volatilities on Ark Restaurants and YanGuFang International 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 YanGuFang International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and YanGuFang International.
Diversification Opportunities for Ark Restaurants and YanGuFang International
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ark and YanGuFang is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and YanGuFang International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YanGuFang International 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 YanGuFang International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YanGuFang International has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and YanGuFang International go up and down completely randomly.
Pair Corralation between Ark Restaurants and YanGuFang International
Given the investment horizon of 90 days Ark Restaurants Corp is expected to generate 0.27 times more return on investment than YanGuFang International. However, Ark Restaurants Corp is 3.72 times less risky than YanGuFang International. It trades about -0.01 of its potential returns per unit of risk. YanGuFang International Group is currently generating about -0.14 per unit of risk. If you would invest 1,746 in Ark Restaurants Corp on September 12, 2024 and sell it today you would lose (367.00) from holding Ark Restaurants Corp or give up 21.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 61.74% |
| Values | Daily Returns |
Ark Restaurants Corp vs. YanGuFang International Group
Performance |
| Timeline |
| Ark Restaurants Corp |
| YanGuFang International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ark Restaurants and YanGuFang International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ark Restaurants and YanGuFang International
The main advantage of trading using opposite Ark Restaurants and YanGuFang International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ark Restaurants position performs unexpectedly, YanGuFang International 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 YanGuFang International will offset losses from the drop in YanGuFang International's long position.| Ark Restaurants vs. Noble Romans | Ark Restaurants vs. Good Times Restaurants | Ark Restaurants vs. Flanigans Enterprises | Ark Restaurants vs. FAT Brands |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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