Correlation Between Cracker Barrel and LENNAR
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cracker Barrel Old and LENNAR P 5, you can compare the effects of market volatilities on Cracker Barrel and LENNAR 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 Cracker Barrel with a short position of LENNAR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and LENNAR.
Diversification Opportunities for Cracker Barrel and LENNAR
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cracker and LENNAR is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and LENNAR P 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LENNAR P 5 and Cracker Barrel 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 Cracker Barrel Old are associated (or correlated) with LENNAR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LENNAR P 5 has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and LENNAR go up and down completely randomly.
Pair Corralation between Cracker Barrel and LENNAR
Given the investment horizon of 90 days Cracker Barrel Old is expected to generate 14.58 times more return on investment than LENNAR. However, Cracker Barrel is 14.58 times more volatile than LENNAR P 5. It trades about 0.1 of its potential returns per unit of risk. LENNAR P 5 is currently generating about -0.15 per unit of risk. If you would invest 4,309 in Cracker Barrel Old on September 24, 2024 and sell it today you would earn a total of 874.00 from holding Cracker Barrel Old or generate 20.28% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 95.38% |
Values | Daily Returns |
Cracker Barrel Old vs. LENNAR P 5
Performance |
Timeline |
Cracker Barrel Old |
LENNAR P 5 |
Cracker Barrel and LENNAR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Cracker Barrel and LENNAR
The main advantage of trading using opposite Cracker Barrel and LENNAR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, LENNAR 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 LENNAR will offset losses from the drop in LENNAR's long position.Cracker Barrel vs. Brinker International | Cracker Barrel vs. BJs Restaurants | Cracker Barrel vs. Texas Roadhouse | Cracker Barrel vs. Papa Johns International |
LENNAR vs. Cannae Holdings | LENNAR vs. First Watch Restaurant | LENNAR vs. Cracker Barrel Old | LENNAR vs. Avadel Pharmaceuticals PLC |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |