Correlation Between Cracker Barrel and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Uber Technologies 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 Uber Technologies 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 Uber Technologies, you can compare the effects of market volatilities on Cracker Barrel and Uber Technologies 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 Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Uber Technologies.
Diversification Opportunities for Cracker Barrel and Uber Technologies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cracker and Uber is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Uber Technologies go up and down completely randomly.
Pair Corralation between Cracker Barrel and Uber Technologies
Given the investment horizon of 90 days Cracker Barrel Old is expected to under-perform the Uber Technologies. In addition to that, Cracker Barrel is 1.32 times more volatile than Uber Technologies. It trades about -0.04 of its total potential returns per unit of risk. Uber Technologies is currently generating about -0.01 per unit of volatility. If you would invest 7,875 in Uber Technologies on August 25, 2024 and sell it today you would lose (724.00) from holding Uber Technologies or give up 9.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Uber Technologies
Performance |
| Timeline |
| Cracker Barrel Old |
| Uber Technologies |
Cracker Barrel and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Uber Technologies
The main advantage of trading using opposite Cracker Barrel and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| Uber Technologies vs. LYFT Inc | Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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