Correlation Between Cracker Barrel and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Amkor Technology 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 Cracker Barrel and Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cracker Barrel Old and Amkor Technology, you can compare the effects of market volatilities on Cracker Barrel and Amkor Technology 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 Cracker Barrel with a short position of Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Amkor Technology.
Diversification Opportunities for Cracker Barrel and Amkor Technology
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cracker and Amkor is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology and Cracker Barrel 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 Cracker Barrel Old are associated (or correlated) with Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Amkor Technology go up and down completely randomly.
Pair Corralation between Cracker Barrel and Amkor Technology
Given the investment horizon of 90 days Cracker Barrel Old is expected to under-perform the Amkor Technology. But the stock apears to be less risky and, when comparing its historical volatility, Cracker Barrel Old is 1.09 times less risky than Amkor Technology. The stock trades about -0.49 of its potential returns per unit of risk. The Amkor Technology is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 2,372 in Amkor Technology on November 27, 2024 and sell it today you would lose (148.00) from holding Amkor Technology or give up 6.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Amkor Technology
Performance |
| Timeline |
| Cracker Barrel Old |
| Amkor Technology |
Cracker Barrel and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Amkor Technology
The main advantage of trading using opposite Cracker Barrel and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| Amkor Technology vs. Power Integrations | Amkor Technology vs. Diodes Incorporated | Amkor Technology vs. MACOM Technology Solutions | Amkor Technology vs. Cirrus Logic |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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