Correlation Between CHURCH and Biglari Holdings
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By analyzing existing cross correlation between CHURCH DWIGHT INC and Biglari Holdings, you can compare the effects of market volatilities on CHURCH 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 CHURCH with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHURCH and Biglari Holdings.
Diversification Opportunities for CHURCH and Biglari Holdings
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CHURCH and Biglari is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding CHURCH DWIGHT INC and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and CHURCH 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 CHURCH DWIGHT INC 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 CHURCH i.e., CHURCH and Biglari Holdings go up and down completely randomly.
Pair Corralation between CHURCH and Biglari Holdings
Assuming the 90 days trading horizon CHURCH DWIGHT INC is expected to generate 71.92 times more return on investment than Biglari Holdings. However, CHURCH is 71.92 times more volatile than Biglari Holdings. It trades about 0.14 of its potential returns per unit of risk. Biglari Holdings is currently generating about 0.04 per unit of risk. If you would invest 8,413 in CHURCH DWIGHT INC on November 30, 2024 and sell it today you would lose (411.00) from holding CHURCH DWIGHT INC or give up 4.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 31.58% |
| Values | Daily Returns |
CHURCH DWIGHT INC vs. Biglari Holdings
Performance |
| Timeline |
| CHURCH DWIGHT INC |
| Biglari Holdings |
CHURCH and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHURCH and Biglari Holdings
The main advantage of trading using opposite CHURCH and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHURCH 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.| CHURCH vs. Compass Diversified Holdings | CHURCH vs. Delaware Investments Florida | CHURCH vs. SLR Investment Corp | CHURCH vs. Zijin Mining Group |
| 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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