Correlation Between LianDi Clean and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both LianDi Clean 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 LianDi Clean and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LianDi Clean Technology and Biglari Holdings, you can compare the effects of market volatilities on LianDi Clean 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 LianDi Clean with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of LianDi Clean and Biglari Holdings.
Diversification Opportunities for LianDi Clean and Biglari Holdings
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between LianDi and Biglari is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding LianDi Clean Technology and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and LianDi Clean 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 LianDi Clean Technology 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 LianDi Clean i.e., LianDi Clean and Biglari Holdings go up and down completely randomly.
Pair Corralation between LianDi Clean and Biglari Holdings
If you would invest 20,698 in Biglari Holdings on October 25, 2024 and sell it today you would earn a total of 1,459 from holding Biglari Holdings or generate 7.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 92.86% |
| Values | Daily Returns |
LianDi Clean Technology vs. Biglari Holdings
Performance |
| Timeline |
| LianDi Clean Technology |
| Biglari Holdings |
LianDi Clean and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LianDi Clean and Biglari Holdings
The main advantage of trading using opposite LianDi Clean and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LianDi Clean 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.| LianDi Clean vs. Enerflex | LianDi Clean vs. Natural Gas Services | LianDi Clean vs. Archrock | LianDi Clean vs. Geospace Technologies |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |