Correlation Between Biglari Holdings and AUTOMATIC
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By analyzing existing cross correlation between Biglari Holdings and AUTOMATIC DATA PROCESSING, you can compare the effects of market volatilities on Biglari Holdings and AUTOMATIC 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 AUTOMATIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and AUTOMATIC.
Diversification Opportunities for Biglari Holdings and AUTOMATIC
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biglari and AUTOMATIC is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and AUTOMATIC DATA PROCESSING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AUTOMATIC DATA PROCESSING 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 AUTOMATIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AUTOMATIC DATA PROCESSING has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and AUTOMATIC go up and down completely randomly.
Pair Corralation between Biglari Holdings and AUTOMATIC
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.95 times more return on investment than AUTOMATIC. However, Biglari Holdings is 1.95 times more volatile than AUTOMATIC DATA PROCESSING. It trades about 0.31 of its potential returns per unit of risk. AUTOMATIC DATA PROCESSING is currently generating about -0.12 per unit of risk. If you would invest 17,006 in Biglari Holdings on September 13, 2024 and sell it today you would earn a total of 6,073 from holding Biglari Holdings or generate 35.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.02% |
| Values | Daily Returns |
Biglari Holdings vs. AUTOMATIC DATA PROCESSING
Performance |
| Timeline |
| Biglari Holdings |
| AUTOMATIC DATA PROCESSING |
Biglari Holdings and AUTOMATIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and AUTOMATIC
The main advantage of trading using opposite Biglari Holdings and AUTOMATIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, AUTOMATIC 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 AUTOMATIC will offset losses from the drop in AUTOMATIC's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| AUTOMATIC vs. Biglari Holdings | AUTOMATIC vs. Boyd Gaming | AUTOMATIC vs. Magnite | AUTOMATIC vs. Dine Brands Global |
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.
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