Correlation Between Doubledown Interactive and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Doubledown Interactive 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 Doubledown Interactive and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Doubledown Interactive Co and Biglari Holdings, you can compare the effects of market volatilities on Doubledown Interactive 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 Doubledown Interactive with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Doubledown Interactive and Biglari Holdings.
Diversification Opportunities for Doubledown Interactive and Biglari Holdings
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Doubledown and Biglari is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Doubledown Interactive Co and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Doubledown Interactive 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 Doubledown Interactive Co 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 Doubledown Interactive i.e., Doubledown Interactive and Biglari Holdings go up and down completely randomly.
Pair Corralation between Doubledown Interactive and Biglari Holdings
Considering the 90-day investment horizon Doubledown Interactive Co is expected to generate 2.0 times more return on investment than Biglari Holdings. However, Doubledown Interactive is 2.0 times more volatile than Biglari Holdings. It trades about 0.05 of its potential returns per unit of risk. Biglari Holdings is currently generating about 0.07 per unit of risk. If you would invest 794.00 in Doubledown Interactive Co on September 14, 2024 and sell it today you would earn a total of 321.00 from holding Doubledown Interactive Co or generate 40.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Doubledown Interactive Co vs. Biglari Holdings
Performance |
| Timeline |
| Doubledown Interactive |
| Biglari Holdings |
Doubledown Interactive and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Doubledown Interactive and Biglari Holdings
The main advantage of trading using opposite Doubledown Interactive and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Doubledown Interactive 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.| Doubledown Interactive vs. SohuCom | Doubledown Interactive vs. Playstudios | Doubledown Interactive vs. NetEase | Doubledown Interactive vs. Golden Matrix Group |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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