Correlation Between Biglari Holdings and Reborn Coffee
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Reborn Coffee 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 Reborn Coffee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Reborn Coffee, you can compare the effects of market volatilities on Biglari Holdings and Reborn Coffee 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 Reborn Coffee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Reborn Coffee.
Diversification Opportunities for Biglari Holdings and Reborn Coffee
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biglari and Reborn is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Reborn Coffee in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reborn Coffee 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 Reborn Coffee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reborn Coffee has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Reborn Coffee go up and down completely randomly.
Pair Corralation between Biglari Holdings and Reborn Coffee
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.37 times more return on investment than Reborn Coffee. However, Biglari Holdings is 2.74 times less risky than Reborn Coffee. It trades about 0.36 of its potential returns per unit of risk. Reborn Coffee is currently generating about -0.16 per unit of risk. If you would invest 17,300 in Biglari Holdings on September 4, 2024 and sell it today you would earn a total of 4,304 from holding Biglari Holdings or generate 24.88% 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. Reborn Coffee
Performance |
| Timeline |
| Biglari Holdings |
| Reborn Coffee |
Biglari Holdings and Reborn Coffee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Reborn Coffee
The main advantage of trading using opposite Biglari Holdings and Reborn Coffee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Reborn Coffee 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 Reborn Coffee will offset losses from the drop in Reborn Coffee's long position.| Biglari Holdings vs. Hyatt Hotels | Biglari Holdings vs. Smart Share Global | Biglari Holdings vs. Sweetgreen | Biglari Holdings vs. Wyndham Hotels Resorts |
| Reborn Coffee vs. Chanson International Holding | Reborn Coffee vs. TH International Limited | Reborn Coffee vs. Flanigans Enterprises | Reborn Coffee vs. Kura Sushi USA |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |