Correlation Between Bloomin Brands and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Bloomin Brands and Biglari Holdings 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 Bloomin Brands and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bloomin Brands and Biglari Holdings, you can compare the effects of market volatilities on Bloomin Brands and Biglari Holdings 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 Bloomin Brands with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bloomin Brands and Biglari Holdings.
Diversification Opportunities for Bloomin Brands and Biglari Holdings
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bloomin and Biglari is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Bloomin Brands and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Bloomin Brands 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 Bloomin Brands are associated (or correlated) with Biglari Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biglari Holdings has no effect on the direction of Bloomin Brands i.e., Bloomin Brands and Biglari Holdings go up and down completely randomly.
Pair Corralation between Bloomin Brands and Biglari Holdings
Given the investment horizon of 90 days Bloomin Brands is expected to under-perform the Biglari Holdings. In addition to that, Bloomin Brands is 1.46 times more volatile than Biglari Holdings. It trades about -0.16 of its total potential returns per unit of risk. Biglari Holdings is currently generating about 0.44 per unit of volatility. If you would invest 84,155 in Biglari Holdings on August 28, 2024 and sell it today you would earn a total of 19,845 from holding Biglari Holdings or generate 23.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
Bloomin Brands vs. Biglari Holdings
Performance |
| Timeline |
| Bloomin Brands |
| Biglari Holdings |
Bloomin Brands and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bloomin Brands and Biglari Holdings
The main advantage of trading using opposite Bloomin Brands and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bloomin Brands position performs unexpectedly, Biglari Holdings 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 Biglari Holdings will offset losses from the drop in Biglari Holdings' long position.| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
| Biglari Holdings vs. Flanigans Enterprises | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Brinker International | Biglari Holdings vs. Bloomin Brands |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |