Correlation Between Biglari Holdings and AW Revenue
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and AW Revenue 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 Biglari Holdings and AW Revenue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and AW Revenue Royalties, you can compare the effects of market volatilities on Biglari Holdings and AW Revenue 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 Biglari Holdings with a short position of AW Revenue. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and AW Revenue.
Diversification Opportunities for Biglari Holdings and AW Revenue
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biglari and AWRRF is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and AW Revenue Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AW Revenue Royalties and Biglari Holdings 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 Biglari Holdings are associated (or correlated) with AW Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AW Revenue Royalties has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and AW Revenue go up and down completely randomly.
Pair Corralation between Biglari Holdings and AW Revenue
If you would invest 17,279 in Biglari Holdings on August 30, 2024 and sell it today you would earn a total of 4,221 from holding Biglari Holdings or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Biglari Holdings vs. AW Revenue Royalties
Performance |
| Timeline |
| Biglari Holdings |
| AW Revenue Royalties |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Biglari Holdings and AW Revenue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and AW Revenue
The main advantage of trading using opposite Biglari Holdings and AW Revenue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, AW Revenue 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 AW Revenue will offset losses from the drop in AW Revenue's long position.| Biglari Holdings vs. Chipotle Mexican Grill | Biglari Holdings vs. Yum Brands | Biglari Holdings vs. The Wendys Co | Biglari Holdings vs. McDonalds |
| AW Revenue vs. Under Armour C | AW Revenue vs. AerSale Corp | AW Revenue vs. Ryanair Holdings PLC | AW Revenue vs. Victorias Secret Co |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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