Correlation Between Cracker Barrel and CAVA Group,
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and CAVA Group, 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 CAVA Group, 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 CAVA Group,, you can compare the effects of market volatilities on Cracker Barrel and CAVA Group, 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 CAVA Group,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and CAVA Group,.
Diversification Opportunities for Cracker Barrel and CAVA Group,
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cracker and CAVA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and CAVA Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAVA Group, 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 CAVA Group,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAVA Group, has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and CAVA Group, go up and down completely randomly.
Pair Corralation between Cracker Barrel and CAVA Group,
Given the investment horizon of 90 days Cracker Barrel Old is expected to under-perform the CAVA Group,. But the stock apears to be less risky and, when comparing its historical volatility, Cracker Barrel Old is 18.54 times less risky than CAVA Group,. The stock trades about -0.03 of its potential returns per unit of risk. The CAVA Group, is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.00 in CAVA Group, on August 31, 2024 and sell it today you would earn a total of 14,090 from holding CAVA Group, or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.93% |
| Values | Daily Returns |
Cracker Barrel Old vs. CAVA Group,
Performance |
| Timeline |
| Cracker Barrel Old |
| CAVA Group, |
Cracker Barrel and CAVA Group, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and CAVA Group,
The main advantage of trading using opposite Cracker Barrel and CAVA Group, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, CAVA Group, 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 CAVA Group, will offset losses from the drop in CAVA Group,'s long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| CAVA Group, vs. RLJ Lodging Trust | CAVA Group, vs. Aquagold International | CAVA Group, vs. Stepstone Group | CAVA Group, vs. Morningstar Unconstrained Allocation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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