Correlation Between Biglari Holdings and Valneva SE
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Valneva SE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Biglari Holdings and Valneva SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Valneva SE ADR, you can compare the effects of market volatilities on Biglari Holdings and Valneva SE 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 Valneva SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Valneva SE.
Diversification Opportunities for Biglari Holdings and Valneva SE
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Biglari and Valneva is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Valneva SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Valneva SE ADR 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 Valneva SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Valneva SE ADR has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Valneva SE go up and down completely randomly.
Pair Corralation between Biglari Holdings and Valneva SE
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.57 times more return on investment than Valneva SE. However, Biglari Holdings is 1.76 times less risky than Valneva SE. It trades about 0.05 of its potential returns per unit of risk. Valneva SE ADR is currently generating about -0.05 per unit of risk. If you would invest 14,200 in Biglari Holdings on August 28, 2024 and sell it today you would earn a total of 6,498 from holding Biglari Holdings or generate 45.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Valneva SE ADR
Performance |
| Timeline |
| Biglari Holdings |
| Valneva SE ADR |
Biglari Holdings and Valneva SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Valneva SE
The main advantage of trading using opposite Biglari Holdings and Valneva SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Valneva SE 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 Valneva SE will offset losses from the drop in Valneva SE's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Valneva SE vs. Eliem Therapeutics | Valneva SE vs. HCW Biologics | Valneva SE vs. Scpharmaceuticals | Valneva SE vs. Milestone 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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