Correlation Between Biglari Holdings and SOUTHERN
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By analyzing existing cross correlation between Biglari Holdings and SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Biglari Holdings and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and SOUTHERN.
Diversification Opportunities for Biglari Holdings and SOUTHERN
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and SOUTHERN is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and SOUTHERN go up and down completely randomly.
Pair Corralation between Biglari Holdings and SOUTHERN
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.9 times more return on investment than SOUTHERN. However, Biglari Holdings is 1.11 times less risky than SOUTHERN. It trades about 0.2 of its potential returns per unit of risk. SOUTHERN CALIF EDISON is currently generating about -0.2 per unit of risk. If you would invest 17,125 in Biglari Holdings on September 4, 2024 and sell it today you would earn a total of 5,275 from holding Biglari Holdings or generate 30.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 50.0% |
| Values | Daily Returns |
Biglari Holdings vs. SOUTHERN CALIF EDISON
Performance |
| Timeline |
| Biglari Holdings |
| SOUTHERN CALIF EDISON |
Biglari Holdings and SOUTHERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and SOUTHERN
The main advantage of trading using opposite Biglari Holdings and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.| Biglari Holdings vs. Hyatt Hotels | Biglari Holdings vs. Smart Share Global | Biglari Holdings vs. Sweetgreen | Biglari Holdings vs. Wyndham Hotels Resorts |
| SOUTHERN vs. Playtech plc | SOUTHERN vs. Dalata Hotel Group | SOUTHERN vs. Biglari Holdings | SOUTHERN vs. National CineMedia |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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