Correlation Between Biglari Holdings and Sligro Food
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Sligro Food 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 Sligro Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Sligro Food Group, you can compare the effects of market volatilities on Biglari Holdings and Sligro Food 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 Sligro Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Sligro Food.
Diversification Opportunities for Biglari Holdings and Sligro Food
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biglari and Sligro is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Sligro Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sligro Food Group 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 Sligro Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sligro Food Group has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Sligro Food go up and down completely randomly.
Pair Corralation between Biglari Holdings and Sligro Food
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.14 times more return on investment than Sligro Food. However, Biglari Holdings is 1.14 times more volatile than Sligro Food Group. It trades about 0.35 of its potential returns per unit of risk. Sligro Food Group is currently generating about -0.21 per unit of risk. If you would invest 17,279 in Biglari Holdings on August 30, 2024 and sell it today you would earn a total of 4,221 from holding Biglari Holdings or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Sligro Food Group
Performance |
| Timeline |
| Biglari Holdings |
| Sligro Food Group |
Biglari Holdings and Sligro Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Sligro Food
The main advantage of trading using opposite Biglari Holdings and Sligro Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Sligro Food 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 Sligro Food will offset losses from the drop in Sligro Food's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Sligro Food vs. Legacy Education | Sligro Food vs. Apple Inc | Sligro Food vs. NVIDIA | Sligro Food vs. Microsoft |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |