Correlation Between Biglari Holdings and Thermedics
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Thermedics 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 Thermedics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Thermedics, you can compare the effects of market volatilities on Biglari Holdings and Thermedics 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 Thermedics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Thermedics.
Diversification Opportunities for Biglari Holdings and Thermedics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biglari and Thermedics is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Thermedics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thermedics 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 Thermedics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thermedics has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Thermedics go up and down completely randomly.
Pair Corralation between Biglari Holdings and Thermedics
If you would invest 17,453 in Biglari Holdings on September 12, 2024 and sell it today you would earn a total of 5,407 from holding Biglari Holdings or generate 30.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Biglari Holdings vs. Thermedics
Performance |
| Timeline |
| Biglari Holdings |
| Thermedics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Biglari Holdings and Thermedics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Thermedics
The main advantage of trading using opposite Biglari Holdings and Thermedics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Thermedics 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 Thermedics will offset losses from the drop in Thermedics' long position.| Biglari Holdings vs. Noble Romans | Biglari Holdings vs. Flanigans Enterprises | Biglari Holdings vs. FAT Brands | Biglari Holdings vs. El Pollo Loco |
| Thermedics vs. Sphere Entertainment Co | Thermedics vs. Weibo Corp | Thermedics vs. Freedom Bank of | Thermedics vs. Anterix |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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