Correlation Between Biglari Holdings and Vision Marine
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Vision Marine 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 Vision Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Vision Marine Technologies, you can compare the effects of market volatilities on Biglari Holdings and Vision Marine 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 Vision Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Vision Marine.
Diversification Opportunities for Biglari Holdings and Vision Marine
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Biglari and Vision is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Vision Marine Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vision Marine Techno 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 Vision Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vision Marine Techno has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Vision Marine go up and down completely randomly.
Pair Corralation between Biglari Holdings and Vision Marine
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.3 times more return on investment than Vision Marine. However, Biglari Holdings is 3.34 times less risky than Vision Marine. It trades about 0.04 of its potential returns per unit of risk. Vision Marine Technologies is currently generating about -0.13 per unit of risk. If you would invest 17,153 in Biglari Holdings on November 9, 2024 and sell it today you would earn a total of 6,180 from holding Biglari Holdings or generate 36.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Vision Marine Technologies
Performance |
| Timeline |
| Biglari Holdings |
| Vision Marine Techno |
Biglari Holdings and Vision Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Vision Marine
The main advantage of trading using opposite Biglari Holdings and Vision Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Vision Marine 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 Vision Marine will offset losses from the drop in Vision Marine's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Vision Marine vs. EZGO Technologies | Vision Marine vs. Twin Vee Powercats | Vision Marine vs. Malibu Boats | Vision Marine vs. Polaris Industries |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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