Correlation Between Biglari Holdings and Mayfair Gold
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Mayfair Gold 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 Mayfair Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Mayfair Gold Corp, you can compare the effects of market volatilities on Biglari Holdings and Mayfair Gold 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 Mayfair Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Mayfair Gold.
Diversification Opportunities for Biglari Holdings and Mayfair Gold
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and Mayfair is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Mayfair Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mayfair Gold Corp 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 Mayfair Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mayfair Gold Corp has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Mayfair Gold go up and down completely randomly.
Pair Corralation between Biglari Holdings and Mayfair Gold
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.81 times more return on investment than Mayfair Gold. However, Biglari Holdings is 1.81 times more volatile than Mayfair Gold Corp. It trades about 0.38 of its potential returns per unit of risk. Mayfair Gold Corp is currently generating about -0.33 per unit of risk. If you would invest 18,548 in Biglari Holdings on September 13, 2024 and sell it today you would earn a total of 4,312 from holding Biglari Holdings or generate 23.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Mayfair Gold Corp
Performance |
| Timeline |
| Biglari Holdings |
| Mayfair Gold Corp |
Biglari Holdings and Mayfair Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Mayfair Gold
The main advantage of trading using opposite Biglari Holdings and Mayfair Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Mayfair Gold 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 Mayfair Gold will offset losses from the drop in Mayfair Gold's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Mayfair Gold vs. Revival Gold | Mayfair Gold vs. Galiano Gold | Mayfair Gold vs. US Gold Corp | Mayfair Gold vs. HUMANA INC |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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