Correlation Between Cracker Barrel and Youdao
Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and Youdao 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 Cracker Barrel and Youdao into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cracker Barrel Old and Youdao Inc, you can compare the effects of market volatilities on Cracker Barrel and Youdao 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 Youdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and Youdao.
Diversification Opportunities for Cracker Barrel and Youdao
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Cracker and Youdao is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and Youdao Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Youdao Inc 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 Youdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Youdao Inc has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and Youdao go up and down completely randomly.
Pair Corralation between Cracker Barrel and Youdao
Given the investment horizon of 90 days Cracker Barrel Old is expected to generate 1.86 times more return on investment than Youdao. However, Cracker Barrel is 1.86 times more volatile than Youdao Inc. It trades about 0.25 of its potential returns per unit of risk. Youdao Inc is currently generating about 0.08 per unit of risk. If you would invest 5,963 in Cracker Barrel Old on April 23, 2025 and sell it today you would earn a total of 835.00 from holding Cracker Barrel Old or generate 14.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cracker Barrel Old vs. Youdao Inc
Performance |
| Timeline |
| Cracker Barrel Old |
| Youdao Inc |
Cracker Barrel and Youdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cracker Barrel and Youdao
The main advantage of trading using opposite Cracker Barrel and Youdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, Youdao 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 Youdao will offset losses from the drop in Youdao's long position.| Cracker Barrel vs. The Cheesecake Factory | Cracker Barrel vs. Darden Restaurants | Cracker Barrel vs. Brinker International | Cracker Barrel vs. Texas Roadhouse |
| Youdao vs. 17 Education Technology | Youdao vs. Sunlands Technology Group | Youdao vs. Ihuman Inc | Youdao vs. Gaotu Techedu DRC |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |