Correlation Between Biglari Holdings and Kingdee International
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Kingdee International 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 Kingdee International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Kingdee International Software, you can compare the effects of market volatilities on Biglari Holdings and Kingdee International 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 Kingdee International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Kingdee International.
Diversification Opportunities for Biglari Holdings and Kingdee International
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and Kingdee is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Kingdee International Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingdee International 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 Kingdee International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingdee International has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Kingdee International go up and down completely randomly.
Pair Corralation between Biglari Holdings and Kingdee International
If you would invest 110.00 in Kingdee International Software on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Kingdee International Software or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Biglari Holdings vs. Kingdee International Software
Performance |
| Timeline |
| Biglari Holdings |
| Kingdee International |
Biglari Holdings and Kingdee International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Kingdee International
The main advantage of trading using opposite Biglari Holdings and Kingdee International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Kingdee International 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 Kingdee International will offset losses from the drop in Kingdee International's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Kingdee International vs. Albemarle | Kingdee International vs. Balchem | Kingdee International vs. Skechers USA | Kingdee International vs. Lincoln Electric Holdings |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |