Correlation Between Biglari Holdings and CENTERPOINT
Specify exactly 2 symbols:
By analyzing existing cross correlation between Biglari Holdings and CENTERPOINT ENERGY INC, you can compare the effects of market volatilities on Biglari Holdings and CENTERPOINT 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 CENTERPOINT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and CENTERPOINT.
Diversification Opportunities for Biglari Holdings and CENTERPOINT
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biglari and CENTERPOINT is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and CENTERPOINT ENERGY INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTERPOINT ENERGY INC 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 CENTERPOINT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTERPOINT ENERGY INC has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and CENTERPOINT go up and down completely randomly.
Pair Corralation between Biglari Holdings and CENTERPOINT
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 2.4 times more return on investment than CENTERPOINT. However, Biglari Holdings is 2.4 times more volatile than CENTERPOINT ENERGY INC. It trades about 0.07 of its potential returns per unit of risk. CENTERPOINT ENERGY INC is currently generating about 0.01 per unit of risk. If you would invest 15,941 in Biglari Holdings on September 4, 2024 and sell it today you would earn a total of 6,459 from holding Biglari Holdings or generate 40.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.16% |
| Values | Daily Returns |
Biglari Holdings vs. CENTERPOINT ENERGY INC
Performance |
| Timeline |
| Biglari Holdings |
| CENTERPOINT ENERGY INC |
Biglari Holdings and CENTERPOINT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and CENTERPOINT
The main advantage of trading using opposite Biglari Holdings and CENTERPOINT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, CENTERPOINT 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 CENTERPOINT will offset losses from the drop in CENTERPOINT's long position.| Biglari Holdings vs. Hyatt Hotels | Biglari Holdings vs. Smart Share Global | Biglari Holdings vs. Sweetgreen | Biglari Holdings vs. Wyndham Hotels Resorts |
| CENTERPOINT vs. Dalata Hotel Group | CENTERPOINT vs. Biglari Holdings | CENTERPOINT vs. ArcelorMittal SA ADR | CENTERPOINT vs. Accel Entertainment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |