Correlation Between Biglari Holdings and 060505EU4
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By analyzing existing cross correlation between Biglari Holdings and BANK AMER P, you can compare the effects of market volatilities on Biglari Holdings and 060505EU4 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 060505EU4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and 060505EU4.
Diversification Opportunities for Biglari Holdings and 060505EU4
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and 060505EU4 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and BANK AMER P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BANK AMER P 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 060505EU4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BANK AMER P has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and 060505EU4 go up and down completely randomly.
Pair Corralation between Biglari Holdings and 060505EU4
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 2.12 times more return on investment than 060505EU4. However, Biglari Holdings is 2.12 times more volatile than BANK AMER P. It trades about 0.05 of its potential returns per unit of risk. BANK AMER P is currently generating about 0.0 per unit of risk. If you would invest 14,242 in Biglari Holdings on August 31, 2024 and sell it today you would earn a total of 6,801 from holding Biglari Holdings or generate 47.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.95% |
| Values | Daily Returns |
Biglari Holdings vs. BANK AMER P
Performance |
| Timeline |
| Biglari Holdings |
| BANK AMER P |
Biglari Holdings and 060505EU4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and 060505EU4
The main advantage of trading using opposite Biglari Holdings and 060505EU4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, 060505EU4 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 060505EU4 will offset losses from the drop in 060505EU4's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| 060505EU4 vs. Rave Restaurant Group | 060505EU4 vs. Biglari Holdings | 060505EU4 vs. Mativ Holdings | 060505EU4 vs. The Wendys Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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