Correlation Between Franklin Resources and Ark Restaurants
Can any of the company-specific risk be diversified away by investing in both Franklin Resources 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 Franklin Resources and Ark Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Franklin Resources and Ark Restaurants Corp, you can compare the effects of market volatilities on Franklin Resources 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 Franklin Resources with a short position of Ark Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Franklin Resources and Ark Restaurants.
Diversification Opportunities for Franklin Resources and Ark Restaurants
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Franklin and Ark is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Franklin Resources 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 Franklin Resources 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 Franklin Resources 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 Franklin Resources i.e., Franklin Resources and Ark Restaurants go up and down completely randomly.
Pair Corralation between Franklin Resources and Ark Restaurants
Considering the 90-day investment horizon Franklin Resources is expected to under-perform the Ark Restaurants. But the stock apears to be less risky and, when comparing its historical volatility, Franklin Resources is 1.37 times less risky than Ark Restaurants. The stock trades about -0.03 of its potential returns per unit of risk. The Ark Restaurants Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 710.00 in Ark Restaurants Corp on September 10, 2025 and sell it today you would lose (9.00) from holding Ark Restaurants Corp or give up 1.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.3% |
| Values | Daily Returns |
Franklin Resources vs. Ark Restaurants Corp
Performance |
| Timeline |
| Franklin Resources |
| Ark Restaurants Corp |
Franklin Resources and Ark Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Franklin Resources and Ark Restaurants
The main advantage of trading using opposite Franklin Resources and Ark Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Franklin Resources 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.| Franklin Resources vs. BlackRock | Franklin Resources vs. Main Street Capital | Franklin Resources vs. Blackstone Group | Franklin Resources vs. Ares Capital |
| Ark Restaurants vs. Noodles Company | Ark Restaurants vs. ZOOZ Power Ltd | Ark Restaurants vs. High Roller Technologies, | Ark Restaurants vs. NextTrip |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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