Correlation Between Biglari Holdings and Kura Sushi
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Kura Sushi 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 Kura Sushi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Kura Sushi USA, you can compare the effects of market volatilities on Biglari Holdings and Kura Sushi 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 Kura Sushi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Kura Sushi.
Diversification Opportunities for Biglari Holdings and Kura Sushi
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Biglari and Kura is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Kura Sushi USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kura Sushi USA 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 Kura Sushi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kura Sushi USA has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Kura Sushi go up and down completely randomly.
Pair Corralation between Biglari Holdings and Kura Sushi
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.63 times more return on investment than Kura Sushi. However, Biglari Holdings is 1.58 times less risky than Kura Sushi. It trades about 0.28 of its potential returns per unit of risk. Kura Sushi USA is currently generating about 0.09 per unit of risk. If you would invest 17,261 in Biglari Holdings on August 29, 2024 and sell it today you would earn a total of 3,288 from holding Biglari Holdings or generate 19.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Kura Sushi USA
Performance |
| Timeline |
| Biglari Holdings |
| Kura Sushi USA |
Biglari Holdings and Kura Sushi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Kura Sushi
The main advantage of trading using opposite Biglari Holdings and Kura Sushi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Kura Sushi 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 Kura Sushi will offset losses from the drop in Kura Sushi's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |