Correlation Between Jack In and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Jack In 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 Jack In and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jack In The and Cracker Barrel Old, you can compare the effects of market volatilities on Jack In 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 Jack In with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jack In and Cracker Barrel.
Diversification Opportunities for Jack In and Cracker Barrel
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jack and Cracker is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jack In The 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 Jack In 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 Jack In The 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 Jack In i.e., Jack In and Cracker Barrel go up and down completely randomly.
Pair Corralation between Jack In and Cracker Barrel
Given the investment horizon of 90 days Jack In The is expected to under-perform the Cracker Barrel. But the stock apears to be less risky and, when comparing its historical volatility, Jack In The is 1.22 times less risky than Cracker Barrel. The stock trades about -0.05 of its potential returns per unit of risk. The Cracker Barrel Old is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 6,387 in Cracker Barrel Old on August 26, 2024 and sell it today you would lose (1,546) from holding Cracker Barrel Old or give up 24.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jack In The vs. Cracker Barrel Old
Performance |
| Timeline |
| Jack In |
| Cracker Barrel Old |
Jack In and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jack In and Cracker Barrel
The main advantage of trading using opposite Jack In and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jack In 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.| Jack In vs. Dine Brands Global | Jack In vs. Bloomin Brands | Jack In vs. BJs Restaurants | Jack In vs. The Cheesecake Factory |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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