Correlation Between Cracker Barrel and CurrentC Power

Can any of the company-specific risk be diversified away by investing in both Cracker Barrel and CurrentC Power 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 CurrentC Power 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 CurrentC Power, you can compare the effects of market volatilities on Cracker Barrel and CurrentC Power 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 CurrentC Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cracker Barrel and CurrentC Power.

Diversification Opportunities for Cracker Barrel and CurrentC Power

0.13

Correlation Coefficient

Cracker Barrel  CurrentC Power

Average diversification

The 3 months correlation between Cracker and CurrentC is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Cracker Barrel Old and CurrentC Power in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CurrentC Power 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 CurrentC Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CurrentC Power has no effect on the direction of Cracker Barrel i.e., Cracker Barrel and CurrentC Power go up and down completely randomly.

Pair Corralation between Cracker Barrel and CurrentC Power

Given the investment horizon of 90 days Cracker Barrel is expected to generate 43.25 times less return on investment than CurrentC Power. But when comparing it to its historical volatility, Cracker Barrel Old is 14.97 times less risky than CurrentC Power. It trades about 0.06 of its potential returns per unit of risk. CurrentC Power is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2.00  in CurrentC Power on July 2, 2025 and sell it today you would lose (0.89) from holding CurrentC Power or give up 44.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Cracker Barrel Old  vs.  CurrentC Power

Cracker Barrel Old

Risk-Adjusted Performance

Weakest

Over the last 90 days Cracker Barrel Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in October 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

CurrentC Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cracker Barrel and CurrentC Power

The main advantage of trading using opposite Cracker Barrel and CurrentC Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cracker Barrel position performs unexpectedly, CurrentC Power 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 CurrentC Power will offset losses from the drop in CurrentC Power's long position.

The idea behind Cracker Barrel Old and CurrentC Power pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.