Correlation Between Mativ Holdings and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Mativ Holdings 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 Mativ Holdings and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mativ Holdings and Cracker Barrel Old, you can compare the effects of market volatilities on Mativ Holdings 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 Mativ Holdings with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mativ Holdings and Cracker Barrel.
Diversification Opportunities for Mativ Holdings and Cracker Barrel
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mativ and Cracker is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings 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 Mativ Holdings i.e., Mativ Holdings and Cracker Barrel go up and down completely randomly.
Pair Corralation between Mativ Holdings and Cracker Barrel
Given the investment horizon of 90 days Mativ Holdings is expected to under-perform the Cracker Barrel. In addition to that, Mativ Holdings is 1.2 times more volatile than Cracker Barrel Old. It trades about -0.03 of its total potential returns per unit of risk. Cracker Barrel Old is currently generating about -0.01 per unit of volatility. If you would invest 6,433 in Cracker Barrel Old on September 3, 2024 and sell it today you would lose (877.00) from holding Cracker Barrel Old or give up 13.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mativ Holdings vs. Cracker Barrel Old
Performance |
| Timeline |
| Mativ Holdings |
| Cracker Barrel Old |
Mativ Holdings and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mativ Holdings and Cracker Barrel
The main advantage of trading using opposite Mativ Holdings and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mativ Holdings 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.| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel Corp |
| 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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