Correlation Between Evolution Gaming and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Evolution Gaming and Cracker Barrel 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 Evolution Gaming and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolution Gaming Group and Cracker Barrel Old, you can compare the effects of market volatilities on Evolution Gaming and Cracker Barrel 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 Evolution Gaming with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolution Gaming and Cracker Barrel.
Diversification Opportunities for Evolution Gaming and Cracker Barrel
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolution and Cracker is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Evolution Gaming Group and Cracker Barrel Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cracker Barrel Old and Evolution Gaming 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 Evolution Gaming Group are associated (or correlated) with Cracker Barrel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cracker Barrel Old has no effect on the direction of Evolution Gaming i.e., Evolution Gaming and Cracker Barrel go up and down completely randomly.
Pair Corralation between Evolution Gaming and Cracker Barrel
Assuming the 90 days horizon Evolution Gaming Group is expected to generate 0.91 times more return on investment than Cracker Barrel. However, Evolution Gaming Group is 1.1 times less risky than Cracker Barrel. It trades about -0.05 of its potential returns per unit of risk. Cracker Barrel Old is currently generating about -0.49 per unit of risk. If you would invest 7,915 in Evolution Gaming Group on November 27, 2024 and sell it today you would lose (244.00) from holding Evolution Gaming Group or give up 3.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolution Gaming Group vs. Cracker Barrel Old
Performance |
| Timeline |
| Evolution Gaming |
| Cracker Barrel Old |
Evolution Gaming and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolution Gaming and Cracker Barrel
The main advantage of trading using opposite Evolution Gaming and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolution Gaming position performs unexpectedly, Cracker Barrel 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 Cracker Barrel will offset losses from the drop in Cracker Barrel's long position.| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
| Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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