Correlation Between Oatly Group and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Oatly Group 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 Oatly Group and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oatly Group AB and Cracker Barrel Old, you can compare the effects of market volatilities on Oatly Group 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 Oatly Group with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oatly Group and Cracker Barrel.
Diversification Opportunities for Oatly Group and Cracker Barrel
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Oatly and Cracker is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Oatly Group AB 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 Oatly Group 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 Oatly Group AB 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 Oatly Group i.e., Oatly Group and Cracker Barrel go up and down completely randomly.
Pair Corralation between Oatly Group and Cracker Barrel
Given the investment horizon of 90 days Oatly Group AB is expected to under-perform the Cracker Barrel. In addition to that, Oatly Group is 1.76 times more volatile than Cracker Barrel Old. It trades about -0.07 of its total potential returns per unit of risk. Cracker Barrel Old is currently generating about 0.1 per unit of volatility. If you would invest 4,928 in Cracker Barrel Old on August 30, 2024 and sell it today you would earn a total of 348.00 from holding Cracker Barrel Old or generate 7.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oatly Group AB vs. Cracker Barrel Old
Performance |
| Timeline |
| Oatly Group AB |
| Cracker Barrel Old |
Oatly Group and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oatly Group and Cracker Barrel
The main advantage of trading using opposite Oatly Group and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oatly Group 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.| Oatly Group vs. Monster Beverage Corp | Oatly Group vs. Vita Coco | Oatly Group vs. PepsiCo | Oatly Group vs. The Coca Cola |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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