Correlation Between Cracker Barrel and Savers Value
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Savers Value 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 Savers Value 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 Savers Value Village,, you can compare the effects of market volatilities on Cracker Barrel and Savers Value 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 Savers Value. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Savers Value.
Diversification Opportunities for Cracker Barrel and Savers Value
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cracker and Savers is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Savers Value Village, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savers Value Village, 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 Savers Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savers Value Village, has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Savers Value go up and down completely randomly.
Pair Corralation between Cracker Barrel and Savers Value
Given the investment horizon of 90 days Cracker Barrel Old is expected to generate 1.19 times more return on investment than Savers Value. However, Cracker Barrel is 1.19 times more volatile than Savers Value Village,. It trades about 0.16 of its potential returns per unit of risk. Savers Value Village, is currently generating about 0.16 per unit of risk. If you would invest 5,398 in Cracker Barrel Old on October 25, 2024 and sell it today you would earn a total of 633.00 from holding Cracker Barrel Old or generate 11.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Savers Value Village,
Performance |
| Timeline |
| Cracker Barrel Old |
| Savers Value Village, |
Cracker Barrel and Savers Value Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Savers Value
The main advantage of trading using opposite Cracker Barrel and Savers Value positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Savers Value 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 Savers Value will offset losses from the drop in Savers Value'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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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