Correlation Between Biglari Holdings and Paysafe
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Paysafe 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 Paysafe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Paysafe, you can compare the effects of market volatilities on Biglari Holdings and Paysafe 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 Paysafe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Paysafe.
Diversification Opportunities for Biglari Holdings and Paysafe
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biglari and Paysafe is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Paysafe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paysafe 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 Paysafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paysafe has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Paysafe go up and down completely randomly.
Pair Corralation between Biglari Holdings and Paysafe
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.46 times more return on investment than Paysafe. However, Biglari Holdings is 2.15 times less risky than Paysafe. It trades about 0.33 of its potential returns per unit of risk. Paysafe is currently generating about -0.02 per unit of risk. If you would invest 17,300 in Biglari Holdings on September 3, 2024 and sell it today you would earn a total of 3,743 from holding Biglari Holdings or generate 21.64% 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. Paysafe
Performance |
| Timeline |
| Biglari Holdings |
| Paysafe |
Biglari Holdings and Paysafe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Paysafe
The main advantage of trading using opposite Biglari Holdings and Paysafe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Paysafe 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 Paysafe will offset losses from the drop in Paysafe's long position.| Biglari Holdings vs. Highway Holdings Limited | Biglari Holdings vs. QCR Holdings | Biglari Holdings vs. Partner Communications | Biglari Holdings vs. Acumen Pharmaceuticals |
| Paysafe vs. Skillz Platform | Paysafe vs. SoFi Technologies | Paysafe vs. Clover Health Investments | Paysafe vs. Opendoor Technologies |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |