Correlation Between Melexis NV and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Melexis NV 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 Melexis NV and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Melexis NV and Cracker Barrel Old, you can compare the effects of market volatilities on Melexis NV 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 Melexis NV with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Melexis NV and Cracker Barrel.
Diversification Opportunities for Melexis NV and Cracker Barrel
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Melexis and Cracker is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Melexis NV 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 Melexis NV 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 Melexis NV 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 Melexis NV i.e., Melexis NV and Cracker Barrel go up and down completely randomly.
Pair Corralation between Melexis NV and Cracker Barrel
Assuming the 90 days horizon Melexis NV is expected to generate 1.01 times more return on investment than Cracker Barrel. However, Melexis NV is 1.01 times more volatile than Cracker Barrel Old. It trades about 0.02 of its potential returns per unit of risk. Cracker Barrel Old is currently generating about -0.03 per unit of risk. If you would invest 6,654 in Melexis NV on September 14, 2024 and sell it today you would earn a total of 771.00 from holding Melexis NV or generate 11.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Melexis NV vs. Cracker Barrel Old
Performance |
| Timeline |
| Melexis NV |
| Cracker Barrel Old |
Melexis NV and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Melexis NV and Cracker Barrel
The main advantage of trading using opposite Melexis NV and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Melexis NV 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.| Melexis NV vs. Cracker Barrel Old | Melexis NV vs. BJs Restaurants | Melexis NV vs. Dine Brands Global | Melexis NV vs. Dave Busters Entertainment |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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