Correlation Between Biglari Holdings and LOBO EV
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and LOBO EV 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 LOBO EV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and LOBO EV TECHNOLOGIES, you can compare the effects of market volatilities on Biglari Holdings and LOBO EV 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 LOBO EV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and LOBO EV.
Diversification Opportunities for Biglari Holdings and LOBO EV
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Biglari and LOBO is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and LOBO EV TECHNOLOGIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOBO EV TECHNOLOGIES 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 LOBO EV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOBO EV TECHNOLOGIES has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and LOBO EV go up and down completely randomly.
Pair Corralation between Biglari Holdings and LOBO EV
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.25 times more return on investment than LOBO EV. However, Biglari Holdings is 4.04 times less risky than LOBO EV. It trades about 0.05 of its potential returns per unit of risk. LOBO EV TECHNOLOGIES is currently generating about 0.0 per unit of risk. If you would invest 13,999 in Biglari Holdings on September 3, 2024 and sell it today you would earn a total of 7,044 from holding Biglari Holdings or generate 50.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 35.76% |
| Values | Daily Returns |
Biglari Holdings vs. LOBO EV TECHNOLOGIES
Performance |
| Timeline |
| Biglari Holdings |
| LOBO EV TECHNOLOGIES |
Biglari Holdings and LOBO EV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and LOBO EV
The main advantage of trading using opposite Biglari Holdings and LOBO EV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, LOBO EV 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 LOBO EV will offset losses from the drop in LOBO EV's long position.| Biglari Holdings vs. Highway Holdings Limited | Biglari Holdings vs. QCR Holdings | Biglari Holdings vs. Partner Communications | Biglari Holdings vs. Acumen Pharmaceuticals |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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