Correlation Between Biglari Holdings and Mativ Holdings
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Mativ Holdings 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 Mativ Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Mativ Holdings, you can compare the effects of market volatilities on Biglari Holdings and Mativ Holdings 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 Mativ Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Mativ Holdings.
Diversification Opportunities for Biglari Holdings and Mativ Holdings
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biglari and Mativ is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Mativ Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mativ Holdings 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 Mativ Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mativ Holdings has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Mativ Holdings go up and down completely randomly.
Pair Corralation between Biglari Holdings and Mativ Holdings
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.58 times more return on investment than Mativ Holdings. However, Biglari Holdings is 1.72 times less risky than Mativ Holdings. It trades about 0.03 of its potential returns per unit of risk. Mativ Holdings is currently generating about -0.03 per unit of risk. If you would invest 19,536 in Biglari Holdings on September 3, 2024 and sell it today you would earn a total of 1,507 from holding Biglari Holdings or generate 7.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Mativ Holdings
Performance |
| Timeline |
| Biglari Holdings |
| Mativ Holdings |
Biglari Holdings and Mativ Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Mativ Holdings
The main advantage of trading using opposite Biglari Holdings and Mativ Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Mativ Holdings 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 Mativ Holdings will offset losses from the drop in Mativ Holdings' long position.| Biglari Holdings vs. Highway Holdings Limited | Biglari Holdings vs. QCR Holdings | Biglari Holdings vs. Partner Communications | Biglari Holdings vs. Acumen Pharmaceuticals |
| Mativ Holdings vs. Orion Engineered Carbons | Mativ Holdings vs. Select Energy Services | Mativ Holdings vs. Perimeter Solutions SA | Mativ Holdings vs. FutureFuel 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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