Correlation Between Qilian International and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Qilian International and Biglari Holdings 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 Qilian International and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Qilian International Holding and Biglari Holdings, you can compare the effects of market volatilities on Qilian International and Biglari Holdings 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 Qilian International with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qilian International and Biglari Holdings.
Diversification Opportunities for Qilian International and Biglari Holdings
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Qilian and Biglari is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Qilian International Holding and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Qilian International 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 Qilian International Holding are associated (or correlated) with Biglari Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biglari Holdings has no effect on the direction of Qilian International i.e., Qilian International and Biglari Holdings go up and down completely randomly.
Pair Corralation between Qilian International and Biglari Holdings
Considering the 90-day investment horizon Qilian International Holding is expected to generate 3.32 times more return on investment than Biglari Holdings. However, Qilian International is 3.32 times more volatile than Biglari Holdings. It trades about 0.13 of its potential returns per unit of risk. Biglari Holdings is currently generating about 0.03 per unit of risk. If you would invest 360.00 in Qilian International Holding on September 3, 2024 and sell it today you would earn a total of 522.00 from holding Qilian International Holding or generate 145.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qilian International Holding vs. Biglari Holdings
Performance |
| Timeline |
| Qilian International |
| Biglari Holdings |
Qilian International and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qilian International and Biglari Holdings
The main advantage of trading using opposite Qilian International and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qilian International position performs unexpectedly, Biglari Holdings 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 Biglari Holdings will offset losses from the drop in Biglari Holdings' long position.| Qilian International vs. Biglari Holdings | Qilian International vs. BJs Restaurants | Qilian International vs. The Wendys Co | Qilian International vs. First Watch Restaurant |
| Biglari Holdings vs. Highway Holdings Limited | Biglari Holdings vs. QCR Holdings | Biglari Holdings vs. Partner Communications | Biglari Holdings vs. Acumen Pharmaceuticals |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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