Correlation Between Duluth Holdings and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Duluth Holdings 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 Duluth Holdings and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Duluth Holdings and Biglari Holdings, you can compare the effects of market volatilities on Duluth Holdings 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 Duluth Holdings with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duluth Holdings and Biglari Holdings.
Diversification Opportunities for Duluth Holdings and Biglari Holdings
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Duluth and Biglari is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Duluth Holdings and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Duluth 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 Duluth Holdings 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 Duluth Holdings i.e., Duluth Holdings and Biglari Holdings go up and down completely randomly.
Pair Corralation between Duluth Holdings and Biglari Holdings
Given the investment horizon of 90 days Duluth Holdings is expected to under-perform the Biglari Holdings. In addition to that, Duluth Holdings is 1.12 times more volatile than Biglari Holdings. It trades about -0.09 of its total potential returns per unit of risk. Biglari Holdings is currently generating about 0.37 per unit of volatility. If you would invest 16,536 in Biglari Holdings on August 23, 2024 and sell it today you would earn a total of 4,314 from holding Biglari Holdings or generate 26.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duluth Holdings vs. Biglari Holdings
Performance |
| Timeline |
| Duluth Holdings |
| Biglari Holdings |
Duluth Holdings and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duluth Holdings and Biglari Holdings
The main advantage of trading using opposite Duluth Holdings and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duluth Holdings 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.| Duluth Holdings vs. Ross Stores | Duluth Holdings vs. Childrens Place | Duluth Holdings vs. Guess Inc | Duluth Holdings vs. Cato Corporation |
| Biglari Holdings vs. Bloomin Brands | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Darden Restaurants | Biglari Holdings vs. Wingstop |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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