Correlation Between Biglari Holdings and TradeUP Acquisition
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and TradeUP Acquisition 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 TradeUP Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and TradeUP Acquisition Corp, you can compare the effects of market volatilities on Biglari Holdings and TradeUP Acquisition 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 TradeUP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and TradeUP Acquisition.
Diversification Opportunities for Biglari Holdings and TradeUP Acquisition
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biglari and TradeUP is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and TradeUP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeUP Acquisition 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 TradeUP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeUP Acquisition Corp has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and TradeUP Acquisition go up and down completely randomly.
Pair Corralation between Biglari Holdings and TradeUP Acquisition
If you would invest 17,201 in Biglari Holdings on November 2, 2024 and sell it today you would earn a total of 6,185 from holding Biglari Holdings or generate 35.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.97% |
| Values | Daily Returns |
Biglari Holdings vs. TradeUP Acquisition Corp
Performance |
| Timeline |
| Biglari Holdings |
| TradeUP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Biglari Holdings and TradeUP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and TradeUP Acquisition
The main advantage of trading using opposite Biglari Holdings and TradeUP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, TradeUP Acquisition 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 TradeUP Acquisition will offset losses from the drop in TradeUP Acquisition's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| TradeUP Acquisition vs. Borr Drilling | TradeUP Acquisition vs. Energold Drilling Corp | TradeUP Acquisition vs. Catalyst Pharmaceuticals | TradeUP Acquisition vs. Genfit |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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