Correlation Between Cracker Barrel and Siriuspoint
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Siriuspoint 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 Siriuspoint 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 Siriuspoint, you can compare the effects of market volatilities on Cracker Barrel and Siriuspoint 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 Siriuspoint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Siriuspoint.
Diversification Opportunities for Cracker Barrel and Siriuspoint
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cracker and Siriuspoint is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Siriuspoint in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siriuspoint 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 Siriuspoint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siriuspoint has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Siriuspoint go up and down completely randomly.
Pair Corralation between Cracker Barrel and Siriuspoint
Given the investment horizon of 90 days Cracker Barrel Old is expected to generate 1.37 times more return on investment than Siriuspoint. However, Cracker Barrel is 1.37 times more volatile than Siriuspoint. It trades about 0.24 of its potential returns per unit of risk. Siriuspoint is currently generating about 0.28 per unit of risk. If you would invest 4,698 in Cracker Barrel Old on September 2, 2024 and sell it today you would earn a total of 858.00 from holding Cracker Barrel Old or generate 18.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Siriuspoint
Performance |
| Timeline |
| Cracker Barrel Old |
| Siriuspoint |
Cracker Barrel and Siriuspoint Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Siriuspoint
The main advantage of trading using opposite Cracker Barrel and Siriuspoint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Siriuspoint 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 Siriuspoint will offset losses from the drop in Siriuspoint's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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