Correlation Between Biglari Holdings and Funko
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Funko 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 Funko into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Funko Inc, you can compare the effects of market volatilities on Biglari Holdings and Funko 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 Funko. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Funko.
Diversification Opportunities for Biglari Holdings and Funko
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and Funko is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Funko Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Funko Inc 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 Funko. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Funko Inc has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Funko go up and down completely randomly.
Pair Corralation between Biglari Holdings and Funko
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.07 times more return on investment than Funko. However, Biglari Holdings is 1.07 times more volatile than Funko Inc. It trades about 0.45 of its potential returns per unit of risk. Funko Inc is currently generating about 0.04 per unit of risk. If you would invest 17,453 in Biglari Holdings on September 12, 2024 and sell it today you would earn a total of 5,407 from holding Biglari Holdings or generate 30.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Funko Inc
Performance |
| Timeline |
| Biglari Holdings |
| Funko Inc |
Biglari Holdings and Funko Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Funko
The main advantage of trading using opposite Biglari Holdings and Funko positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Funko 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 Funko will offset losses from the drop in Funko's long position.| Biglari Holdings vs. Noble Romans | Biglari Holdings vs. Good Times Restaurants | Biglari Holdings vs. Flanigans Enterprises | Biglari Holdings vs. FAT Brands |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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