Correlation Between Marimaca Copper and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Marimaca Copper 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 Marimaca Copper and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marimaca Copper Corp and Biglari Holdings, you can compare the effects of market volatilities on Marimaca Copper 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 Marimaca Copper with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marimaca Copper and Biglari Holdings.
Diversification Opportunities for Marimaca Copper and Biglari Holdings
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Marimaca and Biglari is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Marimaca Copper Corp and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Marimaca Copper 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 Marimaca Copper Corp 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 Marimaca Copper i.e., Marimaca Copper and Biglari Holdings go up and down completely randomly.
Pair Corralation between Marimaca Copper and Biglari Holdings
Assuming the 90 days horizon Marimaca Copper Corp is expected to generate 0.89 times more return on investment than Biglari Holdings. However, Marimaca Copper Corp is 1.13 times less risky than Biglari Holdings. It trades about 0.13 of its potential returns per unit of risk. Biglari Holdings is currently generating about -0.16 per unit of risk. If you would invest 368.00 in Marimaca Copper Corp on November 3, 2024 and sell it today you would earn a total of 18.00 from holding Marimaca Copper Corp or generate 4.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Marimaca Copper Corp vs. Biglari Holdings
Performance |
| Timeline |
| Marimaca Copper Corp |
| Biglari Holdings |
Marimaca Copper and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Marimaca Copper and Biglari Holdings
The main advantage of trading using opposite Marimaca Copper and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marimaca Copper 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.| Marimaca Copper vs. Freeport McMoran Copper Gold | Marimaca Copper vs. Antofagasta PLC | Marimaca Copper vs. First Quantum Minerals | Marimaca Copper vs. Jiangxi Copper |
| 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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