Correlation Between Flanigans Enterprises and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Flanigans Enterprises and Cracker Barrel 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 Flanigans Enterprises and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Flanigans Enterprises and Cracker Barrel Old, you can compare the effects of market volatilities on Flanigans Enterprises and Cracker Barrel 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 Flanigans Enterprises with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flanigans Enterprises and Cracker Barrel.
Diversification Opportunities for Flanigans Enterprises and Cracker Barrel
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Flanigans and Cracker is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Flanigans Enterprises and Cracker Barrel Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cracker Barrel Old and Flanigans Enterprises 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 Flanigans Enterprises are associated (or correlated) with Cracker Barrel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cracker Barrel Old has no effect on the direction of Flanigans Enterprises i.e., Flanigans Enterprises and Cracker Barrel go up and down completely randomly.
Pair Corralation between Flanigans Enterprises and Cracker Barrel
Considering the 90-day investment horizon Flanigans Enterprises is expected to under-perform the Cracker Barrel. But the stock apears to be less risky and, when comparing its historical volatility, Flanigans Enterprises is 3.13 times less risky than Cracker Barrel. The stock trades about -0.06 of its potential returns per unit of risk. The Cracker Barrel Old is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4,583 in Cracker Barrel Old on September 12, 2024 and sell it today you would earn a total of 621.00 from holding Cracker Barrel Old or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Flanigans Enterprises vs. Cracker Barrel Old
Performance |
| Timeline |
| Flanigans Enterprises |
| Cracker Barrel Old |
Flanigans Enterprises and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Flanigans Enterprises and Cracker Barrel
The main advantage of trading using opposite Flanigans Enterprises and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Flanigans Enterprises position performs unexpectedly, Cracker Barrel 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 Cracker Barrel will offset losses from the drop in Cracker Barrel's long position.| Flanigans Enterprises vs. Noble Romans | Flanigans Enterprises vs. Good Times Restaurants | Flanigans Enterprises vs. FAT Brands | Flanigans Enterprises vs. El Pollo Loco |
| Cracker Barrel vs. Noble Romans | Cracker Barrel vs. Good Times Restaurants | Cracker Barrel vs. Flanigans Enterprises | Cracker Barrel vs. FAT Brands |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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