Correlation Between Jack In and Ark Restaurants

Can any of the company-specific risk be diversified away by investing in both Jack In 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 Jack In and Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Jack In and Ark Restaurants

0.06

Correlation Coefficient

Jack In  Ark Restaurants

Significant diversification

The 3 months correlation between Jack and Ark is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The 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 Jack In 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 Jack In The 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 Jack In i.e., Jack In and Ark Restaurants go up and down completely randomly.

Pair Corralation between Jack In and Ark Restaurants

Given the investment horizon of 90 days Jack In The is expected to generate 1.75 times more return on investment than Ark Restaurants. However, Jack In is 1.75 times more volatile than Ark Restaurants Corp. It trades about -0.09 of its potential returns per unit of risk. Ark Restaurants Corp is currently generating about -0.21 per unit of risk. If you would invest  2,638  in Jack In The on May 6, 2025 and sell it today you would lose (715.00) from holding Jack In The or give up 27.1% of portfolio value over 90 days.

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

Jack In The  vs.  Ark Restaurants Corp

Jack In

Risk-Adjusted Performance

Very Weak

Over the last 90 days Jack In The has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's fundamental indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

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.

Pair Trading with Jack In and Ark Restaurants

The main advantage of trading using opposite Jack In and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack In 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.

The idea behind Jack In The and Ark Restaurants 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.