Correlation Between Playtech Plc and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Playtech Plc 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 Playtech Plc and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Playtech plc and Cracker Barrel Old, you can compare the effects of market volatilities on Playtech Plc 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 Playtech Plc with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Playtech Plc and Cracker Barrel.
Diversification Opportunities for Playtech Plc and Cracker Barrel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Playtech and Cracker is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Playtech plc 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 Playtech Plc 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 Playtech plc 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 Playtech Plc i.e., Playtech Plc and Cracker Barrel go up and down completely randomly.
Pair Corralation between Playtech Plc and Cracker Barrel
If you would invest 900.00 in Playtech plc on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Playtech plc or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Playtech plc vs. Cracker Barrel Old
Performance |
| Timeline |
| Playtech plc |
| Cracker Barrel Old |
Playtech Plc and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Playtech Plc and Cracker Barrel
The main advantage of trading using opposite Playtech Plc and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Playtech Plc 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.| Playtech Plc vs. Starbucks | Playtech Plc vs. The Wendys Co | Playtech Plc vs. Eastern Co | Playtech Plc vs. NuRAN Wireless |
| 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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