Correlation Between Boston Omaha and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Boston Omaha 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 Boston Omaha and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Omaha Corp and Biglari Holdings, you can compare the effects of market volatilities on Boston Omaha 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 Boston Omaha with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and Biglari Holdings.
Diversification Opportunities for Boston Omaha and Biglari Holdings
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Boston and Biglari is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Boston Omaha 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 Boston Omaha Corp 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 Boston Omaha i.e., Boston Omaha and Biglari Holdings go up and down completely randomly.
Pair Corralation between Boston Omaha and Biglari Holdings
Considering the 90-day investment horizon Boston Omaha Corp is expected to under-perform the Biglari Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Boston Omaha Corp is 1.16 times less risky than Biglari Holdings. The stock trades about -0.03 of its potential returns per unit of risk. The Biglari Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 20,291 in Biglari Holdings on August 31, 2024 and sell it today you would earn a total of 752.00 from holding Biglari Holdings or generate 3.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Omaha Corp vs. Biglari Holdings
Performance |
| Timeline |
| Boston Omaha Corp |
| Biglari Holdings |
Boston Omaha and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Omaha and Biglari Holdings
The main advantage of trading using opposite Boston Omaha and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha 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.| Boston Omaha vs. Integral Ad Science | Boston Omaha vs. Cardlytics | Boston Omaha vs. Cimpress NV | Boston Omaha vs. QuinStreet |
| Biglari Holdings vs. Cannae Holdings | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Ark Restaurants Corp | Biglari Holdings vs. Noble Romans |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |