Correlation Between Biglari Holdings and Clovis Oncology
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Clovis Oncology 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 Clovis Oncology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Clovis Oncology, you can compare the effects of market volatilities on Biglari Holdings and Clovis Oncology 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 Clovis Oncology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Clovis Oncology.
Diversification Opportunities for Biglari Holdings and Clovis Oncology
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biglari and Clovis is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Clovis Oncology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clovis Oncology 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 Clovis Oncology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clovis Oncology has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Clovis Oncology go up and down completely randomly.
Pair Corralation between Biglari Holdings and Clovis Oncology
If you would invest 15,941 in Biglari Holdings on September 4, 2024 and sell it today you would earn a total of 5,663 from holding Biglari Holdings or generate 35.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.41% |
| Values | Daily Returns |
Biglari Holdings vs. Clovis Oncology
Performance |
| Timeline |
| Biglari Holdings |
| Clovis Oncology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Biglari Holdings and Clovis Oncology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Clovis Oncology
The main advantage of trading using opposite Biglari Holdings and Clovis Oncology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Clovis Oncology 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 Clovis Oncology will offset losses from the drop in Clovis Oncology's long position.| Biglari Holdings vs. Hyatt Hotels | Biglari Holdings vs. Smart Share Global | Biglari Holdings vs. Sweetgreen | Biglari Holdings vs. Wyndham Hotels Resorts |
| Clovis Oncology vs. Cardinal Health | Clovis Oncology vs. Aquestive Therapeutics | Clovis Oncology vs. Microbot Medical | Clovis Oncology vs. LENSAR Inc |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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