Correlation Between Cracker Barrel and Mountain Crest
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Mountain Crest 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 Mountain Crest 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 Mountain Crest Acquisition, you can compare the effects of market volatilities on Cracker Barrel and Mountain Crest 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 Mountain Crest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Mountain Crest.
Diversification Opportunities for Cracker Barrel and Mountain Crest
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cracker and Mountain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Mountain Crest Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mountain Crest Acqui 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 Mountain Crest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mountain Crest Acqui has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Mountain Crest go up and down completely randomly.
Pair Corralation between Cracker Barrel and Mountain Crest
If you would invest 3,645 in Cracker Barrel Old on September 12, 2024 and sell it today you would earn a total of 1,650 from holding Cracker Barrel Old or generate 45.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Mountain Crest Acquisition
Performance |
| Timeline |
| Cracker Barrel Old |
| Mountain Crest Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cracker Barrel and Mountain Crest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Mountain Crest
The main advantage of trading using opposite Cracker Barrel and Mountain Crest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Mountain Crest 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 Mountain Crest will offset losses from the drop in Mountain Crest's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| Mountain Crest vs. Harmony Gold Mining | Mountain Crest vs. PVH Corp | Mountain Crest vs. IPG Photonics | Mountain Crest vs. Lululemon Athletica |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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