Correlation Between Biglari Holdings and 66977WAP4
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By analyzing existing cross correlation between Biglari Holdings and Nova Chemicals 5, you can compare the effects of market volatilities on Biglari Holdings and 66977WAP4 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 66977WAP4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and 66977WAP4.
Diversification Opportunities for Biglari Holdings and 66977WAP4
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and 66977WAP4 is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Nova Chemicals 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nova Chemicals 5 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 66977WAP4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nova Chemicals 5 has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and 66977WAP4 go up and down completely randomly.
Pair Corralation between Biglari Holdings and 66977WAP4
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 5.45 times more return on investment than 66977WAP4. However, Biglari Holdings is 5.45 times more volatile than Nova Chemicals 5. It trades about 0.05 of its potential returns per unit of risk. Nova Chemicals 5 is currently generating about 0.0 per unit of risk. If you would invest 19,491 in Biglari Holdings on September 4, 2024 and sell it today you would earn a total of 2,113 from holding Biglari Holdings or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 56.0% |
| Values | Daily Returns |
Biglari Holdings vs. Nova Chemicals 5
Performance |
| Timeline |
| Biglari Holdings |
| Nova Chemicals 5 |
Biglari Holdings and 66977WAP4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and 66977WAP4
The main advantage of trading using opposite Biglari Holdings and 66977WAP4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, 66977WAP4 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 66977WAP4 will offset losses from the drop in 66977WAP4's long position.| Biglari Holdings vs. Hyatt Hotels | Biglari Holdings vs. Smart Share Global | Biglari Holdings vs. Sweetgreen | Biglari Holdings vs. Wyndham Hotels Resorts |
| 66977WAP4 vs. The Wendys Co | 66977WAP4 vs. Western Acquisition Ventures | 66977WAP4 vs. Biglari Holdings | 66977WAP4 vs. Proficient Auto Logistics, |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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