Correlation Between Ternium SA and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Ternium SA 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 Ternium SA and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ternium SA ADR and Biglari Holdings, you can compare the effects of market volatilities on Ternium SA 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 Ternium SA with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ternium SA and Biglari Holdings.
Diversification Opportunities for Ternium SA and Biglari Holdings
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ternium and Biglari is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ternium SA ADR and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Ternium SA 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 Ternium SA ADR 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 Ternium SA i.e., Ternium SA and Biglari Holdings go up and down completely randomly.
Pair Corralation between Ternium SA and Biglari Holdings
Allowing for the 90-day total investment horizon Ternium SA is expected to generate 8.26 times less return on investment than Biglari Holdings. But when comparing it to its historical volatility, Ternium SA ADR is 1.25 times less risky than Biglari Holdings. It trades about 0.0 of its potential returns per unit of risk. Biglari Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 17,400 in Biglari Holdings on December 17, 2024 and sell it today you would earn a total of 3,807 from holding Biglari Holdings or generate 21.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ternium SA ADR vs. Biglari Holdings
Performance |
| Timeline |
| Ternium SA ADR |
| Biglari Holdings |
Ternium SA and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ternium SA and Biglari Holdings
The main advantage of trading using opposite Ternium SA and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ternium SA 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.| Ternium SA vs. POSCO Holdings | ||
| Ternium SA vs. Steel Dynamics | ||
| Ternium SA vs. Gerdau SA ADR | ||
| Ternium SA vs. Nucor Corp |
| 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |
Recommendations on macroaxis.com are based on what is currently trending. Macroaxis LLC is not a registered investment advisor or broker/dealer.
The information on the site should be used for informational purposes only and is not investment advice.
more