Correlation Between Cracker Barrel and Jack In
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Jack In 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 Jack In 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 Jack In The, you can compare the effects of market volatilities on Cracker Barrel and Jack In 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 Jack In. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Jack In.
Diversification Opportunities for Cracker Barrel and Jack In
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cracker and Jack is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Jack In The in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jack In 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 Jack In. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jack In has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Jack In go up and down completely randomly.
Pair Corralation between Cracker Barrel and Jack In
Given the investment horizon of 90 days Cracker Barrel Old is expected to under-perform the Jack In. In addition to that, Cracker Barrel is 1.94 times more volatile than Jack In The. It trades about -0.15 of its total potential returns per unit of risk. Jack In The is currently generating about 0.04 per unit of volatility. If you would invest 3,866 in Jack In The on November 18, 2024 and sell it today you would earn a total of 52.00 from holding Jack In The or generate 1.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Jack In The
Performance |
| Timeline |
| Cracker Barrel Old |
| Jack In |
Cracker Barrel and Jack In Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Jack In
The main advantage of trading using opposite Cracker Barrel and Jack In positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Jack In 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 Jack In will offset losses from the drop in Jack In's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| Jack In vs. Dine Brands Global | Jack In vs. Bloomin Brands | Jack In vs. BJs Restaurants | Jack In vs. The Cheesecake Factory |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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