Correlation Between Mapletree Logistics and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Mapletree Logistics 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 Mapletree Logistics and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mapletree Logistics Trust and Biglari Holdings, you can compare the effects of market volatilities on Mapletree Logistics 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 Mapletree Logistics with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mapletree Logistics and Biglari Holdings.
Diversification Opportunities for Mapletree Logistics and Biglari Holdings
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mapletree and Biglari is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Mapletree Logistics Trust and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Mapletree Logistics 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 Mapletree Logistics Trust 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 Mapletree Logistics i.e., Mapletree Logistics and Biglari Holdings go up and down completely randomly.
Pair Corralation between Mapletree Logistics and Biglari Holdings
Assuming the 90 days horizon Mapletree Logistics Trust is expected to under-perform the Biglari Holdings. But the pink sheet apears to be less risky and, when comparing its historical volatility, Mapletree Logistics Trust is 2.49 times less risky than Biglari Holdings. The pink sheet trades about -0.35 of its potential returns per unit of risk. The Biglari Holdings is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 18,548 in Biglari Holdings on September 13, 2024 and sell it today you would earn a total of 4,312 from holding Biglari Holdings or generate 23.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mapletree Logistics Trust vs. Biglari Holdings
Performance |
| Timeline |
| Mapletree Logistics Trust |
| Biglari Holdings |
Mapletree Logistics and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mapletree Logistics and Biglari Holdings
The main advantage of trading using opposite Mapletree Logistics and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mapletree Logistics 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.| Mapletree Logistics vs. Biglari Holdings | Mapletree Logistics vs. The Cheesecake Factory | Mapletree Logistics vs. Dennys Corp | Mapletree Logistics vs. Playa Hotels Resorts |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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