Correlation Between Cracker Barrel and KRAFT
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By analyzing existing cross correlation between Cracker Barrel Old and KRAFT HEINZ FOODS, you can compare the effects of market volatilities on Cracker Barrel and KRAFT 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 KRAFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and KRAFT.
Diversification Opportunities for Cracker Barrel and KRAFT
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cracker and KRAFT is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and KRAFT HEINZ FOODS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KRAFT HEINZ FOODS 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 KRAFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KRAFT HEINZ FOODS has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and KRAFT go up and down completely randomly.
Pair Corralation between Cracker Barrel and KRAFT
Given the investment horizon of 90 days Cracker Barrel Old is expected to generate 10.38 times more return on investment than KRAFT. However, Cracker Barrel is 10.38 times more volatile than KRAFT HEINZ FOODS. It trades about 0.14 of its potential returns per unit of risk. KRAFT HEINZ FOODS is currently generating about -0.09 per unit of risk. If you would invest 3,967 in Cracker Barrel Old on November 3, 2024 and sell it today you would earn a total of 2,519 from holding Cracker Barrel Old or generate 63.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Cracker Barrel Old vs. KRAFT HEINZ FOODS
Performance |
| Timeline |
| Cracker Barrel Old |
| KRAFT HEINZ FOODS |
Cracker Barrel and KRAFT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and KRAFT
The main advantage of trading using opposite Cracker Barrel and KRAFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, KRAFT 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 KRAFT will offset losses from the drop in KRAFT's long position.| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
| KRAFT vs. SunOpta | KRAFT vs. Proficient Auto Logistics, | KRAFT vs. Summit Materials | KRAFT vs. FitLife Brands, Common |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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