Correlation Between Integral and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Integral 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 Integral and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Integral Ad Science and Biglari Holdings, you can compare the effects of market volatilities on Integral 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 Integral with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Integral and Biglari Holdings.
Diversification Opportunities for Integral and Biglari Holdings
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Integral and Biglari is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Integral Ad Science and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Integral 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 Integral Ad Science 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 Integral i.e., Integral and Biglari Holdings go up and down completely randomly.
Pair Corralation between Integral and Biglari Holdings
Considering the 90-day investment horizon Integral Ad Science is expected to under-perform the Biglari Holdings. In addition to that, Integral is 1.62 times more volatile than Biglari Holdings. It trades about -0.02 of its total potential returns per unit of risk. Biglari Holdings is currently generating about 0.02 per unit of volatility. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Integral Ad Science vs. Biglari Holdings
Performance |
| Timeline |
| Integral Ad Science |
| Biglari Holdings |
Integral and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Integral and Biglari Holdings
The main advantage of trading using opposite Integral and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Integral 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.The idea behind Integral Ad Science and Biglari Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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