Correlation Between Arko Corp and Landsea Homes

Can any of the company-specific risk be diversified away by investing in both Arko Corp and Landsea Homes 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 Arko Corp and Landsea Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Arko Corp and Landsea Homes Corp, you can compare the effects of market volatilities on Arko Corp and Landsea Homes 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 Arko Corp with a short position of Landsea Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Arko Corp and Landsea Homes.

Diversification Opportunities for Arko Corp and Landsea Homes

0.0

Correlation Coefficient

Arko Corp  Landsea Homes

Pay attention - limited upside

The 3 months correlation between Arko and Landsea is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Arko Corp and Landsea Homes Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Landsea Homes Corp and Arko Corp 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 Arko Corp are associated (or correlated) with Landsea Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Landsea Homes Corp has no effect on the direction of Arko Corp i.e., Arko Corp and Landsea Homes go up and down completely randomly.

Pair Corralation between Arko Corp and Landsea Homes

If you would invest  0.00  in Landsea Homes Corp on May 7, 2025 and sell it today you would earn a total of  0.00  from holding Landsea Homes Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.61%
Values	Daily Returns

Arko Corp  vs.  Landsea Homes Corp

Arko Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Arko Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy forward-looking signals, Arko Corp is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Landsea Homes Corp

Risk-Adjusted Performance

Weakest

Over the last 90 days Landsea Homes Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Landsea Homes is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Arko Corp and Landsea Homes

The main advantage of trading using opposite Arko Corp and Landsea Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Arko Corp position performs unexpectedly, Landsea Homes 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 Landsea Homes will offset losses from the drop in Landsea Homes' long position.

The idea behind Arko Corp and Landsea Homes Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.