Correlation Between Biglari Holdings and VERIZON
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By analyzing existing cross correlation between Biglari Holdings and VERIZON MUNICATIONS INC, you can compare the effects of market volatilities on Biglari Holdings and VERIZON 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 VERIZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and VERIZON.
Diversification Opportunities for Biglari Holdings and VERIZON
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Biglari and VERIZON is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and VERIZON MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERIZON MUNICATIONS 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 VERIZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERIZON MUNICATIONS INC has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and VERIZON go up and down completely randomly.
Pair Corralation between Biglari Holdings and VERIZON
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.06 times more return on investment than VERIZON. However, Biglari Holdings is 1.06 times more volatile than VERIZON MUNICATIONS INC. It trades about 0.31 of its potential returns per unit of risk. VERIZON MUNICATIONS INC is currently generating about -0.05 per unit of risk. If you would invest 17,261 in Biglari Holdings on August 28, 2024 and sell it today you would earn a total of 3,437 from holding Biglari Holdings or generate 19.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. VERIZON MUNICATIONS INC
Performance |
| Timeline |
| Biglari Holdings |
| VERIZON MUNICATIONS INC |
Biglari Holdings and VERIZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and VERIZON
The main advantage of trading using opposite Biglari Holdings and VERIZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, VERIZON 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 VERIZON will offset losses from the drop in VERIZON's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| VERIZON vs. Teleflex Incorporated | VERIZON vs. Keurig Dr Pepper | VERIZON vs. Vita Coco | VERIZON vs. Cumberland Pharmaceuticals |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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