Correlation Between Biglari Holdings and ENTERGY
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By analyzing existing cross correlation between Biglari Holdings and ENTERGY TEX INC, you can compare the effects of market volatilities on Biglari Holdings and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and ENTERGY.
Diversification Opportunities for Biglari Holdings and ENTERGY
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and ENTERGY is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and ENTERGY TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY TEX 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY TEX INC has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and ENTERGY go up and down completely randomly.
Pair Corralation between Biglari Holdings and ENTERGY
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 4.63 times more return on investment than ENTERGY. However, Biglari Holdings is 4.63 times more volatile than ENTERGY TEX INC. It trades about 0.05 of its potential returns per unit of risk. ENTERGY TEX INC is currently generating about 0.0 per unit of risk. If you would invest 16,733 in Biglari Holdings on September 3, 2024 and sell it today you would earn a total of 4,310 from holding Biglari Holdings or generate 25.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.02% |
| Values | Daily Returns |
Biglari Holdings vs. ENTERGY TEX INC
Performance |
| Timeline |
| Biglari Holdings |
| ENTERGY TEX INC |
Biglari Holdings and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and ENTERGY
The main advantage of trading using opposite Biglari Holdings and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.| Biglari Holdings vs. Starbucks | Biglari Holdings vs. Highway Holdings Limited | Biglari Holdings vs. QCR Holdings | Biglari Holdings vs. Partner Communications |
| ENTERGY vs. RadNet Inc | ENTERGY vs. Cumberland Pharmaceuticals | ENTERGY vs. HUTCHMED DRC | ENTERGY vs. Repligen |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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