Correlation Between Cracker Barrel and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Grupo Televisa 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 Grupo Televisa 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 Grupo Televisa SAB, you can compare the effects of market volatilities on Cracker Barrel and Grupo Televisa 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 Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Grupo Televisa.
Diversification Opportunities for Cracker Barrel and Grupo Televisa
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cracker and Grupo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Grupo Televisa go up and down completely randomly.
Pair Corralation between Cracker Barrel and Grupo Televisa
Given the investment horizon of 90 days Cracker Barrel Old is expected to generate 0.56 times more return on investment than Grupo Televisa. However, Cracker Barrel Old is 1.77 times less risky than Grupo Televisa. It trades about 0.05 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.04 per unit of risk. If you would invest 4,784 in Cracker Barrel Old on September 5, 2024 and sell it today you would earn a total of 787.00 from holding Cracker Barrel Old or generate 16.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Cracker Barrel Old vs. Grupo Televisa SAB
Performance |
| Timeline |
| Cracker Barrel Old |
| Grupo Televisa SAB |
Cracker Barrel and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Grupo Televisa
The main advantage of trading using opposite Cracker Barrel and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |