Correlation Between Partner Communications and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Partner Communications 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 Partner Communications and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partner Communications and Biglari Holdings, you can compare the effects of market volatilities on Partner Communications 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 Partner Communications with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partner Communications and Biglari Holdings.
Diversification Opportunities for Partner Communications and Biglari Holdings
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Partner and Biglari is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Partner Communications and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Partner Communications 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 Partner Communications 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 Partner Communications i.e., Partner Communications and Biglari Holdings go up and down completely randomly.
Pair Corralation between Partner Communications and Biglari Holdings
Assuming the 90 days horizon Partner Communications is expected to generate 1.79 times more return on investment than Biglari Holdings. However, Partner Communications is 1.79 times more volatile than Biglari Holdings. It trades about 0.03 of its potential returns per unit of risk. Biglari Holdings is currently generating about 0.05 per unit of risk. If you would invest 462.00 in Partner Communications on September 3, 2024 and sell it today you would earn a total of 38.00 from holding Partner Communications or generate 8.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 43.03% |
| Values | Daily Returns |
Partner Communications vs. Biglari Holdings
Performance |
| Timeline |
| Partner Communications |
| Biglari Holdings |
Partner Communications and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partner Communications and Biglari Holdings
The main advantage of trading using opposite Partner Communications and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partner Communications 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.| Partner Communications vs. Legacy Education | Partner Communications vs. Apple Inc | Partner Communications vs. NVIDIA | Partner Communications vs. Microsoft |
| Biglari Holdings vs. Highway Holdings Limited | Biglari Holdings vs. QCR Holdings | Biglari Holdings vs. Partner Communications | Biglari Holdings vs. Acumen Pharmaceuticals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |