Correlation Between Marimaca Copper and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper 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 Marimaca Copper and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marimaca Copper Corp and Cracker Barrel Old, you can compare the effects of market volatilities on Marimaca Copper 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 Marimaca Copper with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Cracker Barrel.
Diversification Opportunities for Marimaca Copper and Cracker Barrel
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Marimaca and Cracker is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp 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 Marimaca Copper 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 Marimaca Copper Corp 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 Marimaca Copper i.e., Marimaca Copper and Cracker Barrel go up and down completely randomly.
Pair Corralation between Marimaca Copper and Cracker Barrel
Assuming the 90 days horizon Marimaca Copper is expected to generate 3.6 times less return on investment than Cracker Barrel. But when comparing it to its historical volatility, Marimaca Copper Corp is 1.96 times less risky than Cracker Barrel. It trades about 0.13 of its potential returns per unit of risk. Cracker Barrel Old is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,468 in Cracker Barrel Old on November 3, 2024 and sell it today you would earn a total of 1,018 from holding Cracker Barrel Old or generate 18.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marimaca Copper Corp vs. Cracker Barrel Old
Performance |
| Timeline |
| Marimaca Copper Corp |
| Cracker Barrel Old |
Marimaca Copper and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Cracker Barrel
The main advantage of trading using opposite Marimaca Copper and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper 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.| Marimaca Copper vs. Freeport McMoran Copper Gold | Marimaca Copper vs. Antofagasta PLC | Marimaca Copper vs. First Quantum Minerals | Marimaca Copper vs. Jiangxi Copper |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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