Correlation Between Exxon and Cracker Barrel
Can any of the company-specific risk be diversified away by investing in both Exxon 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 Exxon and Cracker Barrel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exxon Mobil Corp and Cracker Barrel Old, you can compare the effects of market volatilities on Exxon 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 Exxon with a short position of Cracker Barrel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exxon and Cracker Barrel.
Diversification Opportunities for Exxon and Cracker Barrel
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Exxon and Cracker is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Exxon Mobil Corp 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 Exxon 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 Exxon Mobil Corp 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 Exxon i.e., Exxon and Cracker Barrel go up and down completely randomly.
Pair Corralation between Exxon and Cracker Barrel
Considering the 90-day investment horizon Exxon Mobil Corp is expected to under-perform the Cracker Barrel. But the stock apears to be less risky and, when comparing its historical volatility, Exxon Mobil Corp is 2.17 times less risky than Cracker Barrel. The stock trades about -0.01 of its potential returns per unit of risk. The Cracker Barrel Old is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,929 in Cracker Barrel Old on March 15, 2025 and sell it today you would earn a total of 1,576 from holding Cracker Barrel Old or generate 40.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exxon Mobil Corp vs. Cracker Barrel Old
Performance |
| Timeline |
| Exxon Mobil Corp |
| Cracker Barrel Old |
Exxon and Cracker Barrel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exxon and Cracker Barrel
The main advantage of trading using opposite Exxon and Cracker Barrel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exxon 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.| Exxon vs. Shell PLC ADR | Exxon vs. BP PLC ADR | Exxon vs. Suncor Energy | Exxon vs. Petroleo Brasileiro Petrobras |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |