Correlation Between Ark Restaurants and Full House

Can any of the company-specific risk be diversified away by investing in both Ark Restaurants and Full House 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 Full House 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 Full House Resorts, you can compare the effects of market volatilities on Ark Restaurants and Full House 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 Full House. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ark Restaurants and Full House.

Diversification Opportunities for Ark Restaurants and Full House

-0.68

Correlation Coefficient

Ark Restaurants  Full House

Excellent diversification

The 3 months correlation between Ark and Full is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ark Restaurants Corp and Full House Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Full House Resorts 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 Full House. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Full House Resorts has no effect on the direction of Ark Restaurants i.e., Ark Restaurants and Full House go up and down completely randomly.

Pair Corralation between Ark Restaurants and Full House

Given the investment horizon of 90 days Ark Restaurants Corp is expected to under-perform the Full House. But the stock apears to be less risky and, when comparing its historical volatility, Ark Restaurants Corp is 1.56 times less risky than Full House. The stock trades about -0.21 of its potential returns per unit of risk. The Full House Resorts is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  307.00  in Full House Resorts on May 6, 2025 and sell it today you would earn a total of  135.00  from holding Full House Resorts or generate 43.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.77%
Values	Daily Returns

Ark Restaurants Corp  vs.  Full House Resorts

Ark Restaurants Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ark Restaurants Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's forward-looking signals remain relatively invariable which may send shares a bit higher in September 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Full House Resorts

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Full House Resorts are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite weak essential indicators, Full House disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ark Restaurants and Full House

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

The idea behind Ark Restaurants Corp and Full House Resorts 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.