Correlation Between Biglari Holdings and ECARX Holdings
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and ECARX 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 Biglari Holdings and ECARX Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and ECARX Holdings Class, you can compare the effects of market volatilities on Biglari Holdings and ECARX 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 Biglari Holdings with a short position of ECARX Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and ECARX Holdings.
Diversification Opportunities for Biglari Holdings and ECARX Holdings
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biglari and ECARX is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and ECARX Holdings Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ECARX Holdings Class 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 ECARX Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ECARX Holdings Class has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and ECARX Holdings go up and down completely randomly.
Pair Corralation between Biglari Holdings and ECARX Holdings
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.46 times more return on investment than ECARX Holdings. However, Biglari Holdings is 2.19 times less risky than ECARX Holdings. It trades about 0.06 of its potential returns per unit of risk. ECARX Holdings Class is currently generating about -0.04 per unit of risk. If you would invest 14,777 in Biglari Holdings on August 26, 2024 and sell it today you would earn a total of 5,864 from holding Biglari Holdings or generate 39.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. ECARX Holdings Class
Performance |
| Timeline |
| Biglari Holdings |
| ECARX Holdings Class |
Biglari Holdings and ECARX Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and ECARX Holdings
The main advantage of trading using opposite Biglari Holdings and ECARX Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, ECARX 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 ECARX Holdings will offset losses from the drop in ECARX Holdings' long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| ECARX Holdings vs. Dorman Products | ECARX Holdings vs. Monro Muffler Brake | ECARX Holdings vs. Standard Motor Products | ECARX Holdings vs. Stoneridge |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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