Correlation Between Pinstripes Holdings and Ark Restaurants
Can any of the company-specific risk be diversified away by investing in both Pinstripes Holdings and Ark Restaurants 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 Pinstripes Holdings and Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinstripes Holdings and Ark Restaurants Corp, you can compare the effects of market volatilities on Pinstripes Holdings and Ark Restaurants 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 Pinstripes Holdings with a short position of Ark Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinstripes Holdings and Ark Restaurants.
Diversification Opportunities for Pinstripes Holdings and Ark Restaurants
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pinstripes and Ark is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Pinstripes Holdings and Ark Restaurants Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ark Restaurants Corp and Pinstripes Holdings 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 Pinstripes Holdings are associated (or correlated) with Ark Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ark Restaurants Corp has no effect on the direction of Pinstripes Holdings i.e., Pinstripes Holdings and Ark Restaurants go up and down completely randomly.
Pair Corralation between Pinstripes Holdings and Ark Restaurants
Given the investment horizon of 90 days Pinstripes Holdings is expected to generate 2.62 times more return on investment than Ark Restaurants. However, Pinstripes Holdings is 2.62 times more volatile than Ark Restaurants Corp. It trades about 0.11 of its potential returns per unit of risk. Ark Restaurants Corp is currently generating about -0.31 per unit of risk. If you would invest 42.00 in Pinstripes Holdings on November 5, 2024 and sell it today you would earn a total of 5.00 from holding Pinstripes Holdings or generate 11.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinstripes Holdings vs. Ark Restaurants Corp
Performance |
| Timeline |
| Pinstripes Holdings |
| Ark Restaurants Corp |
Pinstripes Holdings and Ark Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinstripes Holdings and Ark Restaurants
The main advantage of trading using opposite Pinstripes Holdings and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinstripes Holdings position performs unexpectedly, Ark Restaurants 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 Ark Restaurants will offset losses from the drop in Ark Restaurants' long position.| Pinstripes Holdings vs. Altria Group | Pinstripes Holdings vs. Air Products and | Pinstripes Holdings vs. Chemours Co | Pinstripes Holdings vs. Compania Cervecerias Unidas |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |