Correlation Between Biglari Holdings and Where Food
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Where Food 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 Where Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Where Food Comes, you can compare the effects of market volatilities on Biglari Holdings and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Where Food.
Diversification Opportunities for Biglari Holdings and Where Food
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Biglari and Where is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Where Food go up and down completely randomly.
Pair Corralation between Biglari Holdings and Where Food
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 2.01 times more return on investment than Where Food. However, Biglari Holdings is 2.01 times more volatile than Where Food Comes. It trades about 0.35 of its potential returns per unit of risk. Where Food Comes is currently generating about 0.12 per unit of risk. If you would invest 17,279 in Biglari Holdings on August 30, 2024 and sell it today you would earn a total of 4,221 from holding Biglari Holdings or generate 24.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Biglari Holdings vs. Where Food Comes
Performance |
| Timeline |
| Biglari Holdings |
| Where Food Comes |
Biglari Holdings and Where Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Biglari Holdings and Where Food
The main advantage of trading using opposite Biglari Holdings and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food's long position.| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
| Where Food vs. Marin Software | Where Food vs. EzFill Holdings | Where Food vs. Trust Stamp | Where Food vs. Infobird Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |