Correlation Between Cracker Barrel and Prom Resources
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Prom Resources 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 Prom Resources 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 Prom Resources, you can compare the effects of market volatilities on Cracker Barrel and Prom Resources 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 Prom Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Prom Resources.
Diversification Opportunities for Cracker Barrel and Prom Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cracker and Prom is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Prom Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prom Resources 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 Prom Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prom Resources has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Prom Resources go up and down completely randomly.
Pair Corralation between Cracker Barrel and Prom Resources
If you would invest (100.00) in Prom Resources on November 27, 2024 and sell it today you would earn a total of 100.00 from holding Prom Resources or generate -100.0% 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. Prom Resources
Performance |
| Timeline |
| Cracker Barrel Old |
| Prom Resources |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Cracker Barrel and Prom Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Prom Resources
The main advantage of trading using opposite Cracker Barrel and Prom Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Prom Resources 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 Prom Resources will offset losses from the drop in Prom Resources' long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| Prom Resources vs. Grillit | Prom Resources vs. ZA Group | Prom Resources vs. Blue Water Global | Prom Resources vs. BJs Restaurants |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |