Correlation Between New Horizon and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both New Horizon 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 New Horizon and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between New Horizon Aircraft and Cracker Barrel Old, you can compare the effects of market volatilities on New Horizon 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 New Horizon with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of New Horizon and Cracker Barrel.
Diversification Opportunities for New Horizon and Cracker Barrel
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between New and Cracker is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding New Horizon Aircraft 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 New Horizon 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 New Horizon Aircraft 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 New Horizon i.e., New Horizon and Cracker Barrel go up and down completely randomly.
Pair Corralation between New Horizon and Cracker Barrel
Given the investment horizon of 90 days New Horizon Aircraft is expected to under-perform the Cracker Barrel. In addition to that, New Horizon is 3.42 times more volatile than Cracker Barrel Old. It trades about -0.04 of its total potential returns per unit of risk. Cracker Barrel Old is currently generating about -0.03 per unit of volatility. If you would invest 8,996 in Cracker Barrel Old on August 30, 2024 and sell it today you would lose (3,720) from holding Cracker Barrel Old or give up 41.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 84.48% |
| Values | Daily Returns |
New Horizon Aircraft vs. Cracker Barrel Old
Performance |
| Timeline |
| New Horizon Aircraft |
| Cracker Barrel Old |
New Horizon and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with New Horizon and Cracker Barrel
The main advantage of trading using opposite New Horizon and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if New Horizon 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.| New Horizon vs. Pentair PLC | New Horizon vs. Griffon | New Horizon vs. Electrovaya Common Shares | New Horizon vs. Corporacion America Airports |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |