Correlation Between Cracker Barrel and Proficient Auto
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Proficient Auto 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 Proficient Auto 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 Proficient Auto Logistics,, you can compare the effects of market volatilities on Cracker Barrel and Proficient Auto 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 Proficient Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Proficient Auto.
Diversification Opportunities for Cracker Barrel and Proficient Auto
-0.87 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cracker and Proficient is -0.87. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Proficient Auto Logistics, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Proficient Auto Logi 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 Proficient Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Proficient Auto Logi has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Proficient Auto go up and down completely randomly.
Pair Corralation between Cracker Barrel and Proficient Auto
Given the investment horizon of 90 days Cracker Barrel is expected to generate 3.73 times less return on investment than Proficient Auto. In addition to that, Cracker Barrel is 1.07 times more volatile than Proficient Auto Logistics,. It trades about 0.07 of its total potential returns per unit of risk. Proficient Auto Logistics, is currently generating about 0.27 per unit of volatility. If you would invest 843.00 in Proficient Auto Logistics, on August 28, 2024 and sell it today you would earn a total of 167.00 from holding Proficient Auto Logistics, or generate 19.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Proficient Auto Logistics,
Performance |
| Timeline |
| Cracker Barrel Old |
| Proficient Auto Logi |
Cracker Barrel and Proficient Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Proficient Auto
The main advantage of trading using opposite Cracker Barrel and Proficient Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Proficient Auto 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 Proficient Auto will offset losses from the drop in Proficient Auto's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| Proficient Auto vs. Air Transport Services | Proficient Auto vs. Mesa Air Group | Proficient Auto vs. Emerson Radio | Proficient Auto vs. Here Media |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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