Correlation Between Cracker Barrel and Paysafe
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Paysafe 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 Paysafe 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 Paysafe, you can compare the effects of market volatilities on Cracker Barrel and Paysafe 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 Paysafe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Paysafe.
Diversification Opportunities for Cracker Barrel and Paysafe
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cracker and Paysafe is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe 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 Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Paysafe go up and down completely randomly.
Pair Corralation between Cracker Barrel and Paysafe
Given the investment horizon of 90 days Cracker Barrel is expected to generate 281.91 times less return on investment than Paysafe. But when comparing it to its historical volatility, Cracker Barrel Old is 1.24 times less risky than Paysafe. It trades about 0.0 of its potential returns per unit of risk. Paysafe is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,050 in Paysafe on September 1, 2024 and sell it today you would earn a total of 938.00 from holding Paysafe or generate 89.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Paysafe
Performance |
| Timeline |
| Cracker Barrel Old |
| Paysafe |
Cracker Barrel and Paysafe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Paysafe
The main advantage of trading using opposite Cracker Barrel and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Paysafe 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 Paysafe will offset losses from the drop in Paysafe's long position.| Cracker Barrel vs. The Wendys Co | Cracker Barrel vs. Shake Shack | Cracker Barrel vs. Papa Johns International | Cracker Barrel vs. Darden Restaurants |
| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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