Correlation Between Biglari Holdings and Golden Entertainment
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Golden Entertainment 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 Golden Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Golden Entertainment, you can compare the effects of market volatilities on Biglari Holdings and Golden Entertainment 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 Golden Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Golden Entertainment.
Diversification Opportunities for Biglari Holdings and Golden Entertainment
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Biglari and Golden is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Golden Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Entertainment 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 Golden Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Entertainment has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Golden Entertainment go up and down completely randomly.
Pair Corralation between Biglari Holdings and Golden Entertainment
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.23 times more return on investment than Golden Entertainment. However, Biglari Holdings is 1.23 times more volatile than Golden Entertainment. It trades about 0.31 of its potential returns per unit of risk. Golden Entertainment is currently generating about 0.19 per unit of risk. If you would invest 17,261 in Biglari Holdings on August 28, 2024 and sell it today you would earn a total of 3,437 from holding Biglari Holdings or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Golden Entertainment
Performance |
| Timeline |
| Biglari Holdings |
| Golden Entertainment |
Biglari Holdings and Golden Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Golden Entertainment
The main advantage of trading using opposite Biglari Holdings and Golden Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Golden Entertainment 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 Golden Entertainment will offset losses from the drop in Golden Entertainment's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Golden Entertainment vs. Red Rock Resorts | Golden Entertainment vs. Century Casinos | Golden Entertainment vs. Studio City International | Golden Entertainment vs. Ballys Corp |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |