Correlation Between Drinks Americas and Biglari Holdings
Can any of the company-specific risk be diversified away by investing in both Drinks Americas 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 Drinks Americas and Biglari Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Drinks Americas Hldg and Biglari Holdings, you can compare the effects of market volatilities on Drinks Americas 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 Drinks Americas with a short position of Biglari Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Drinks Americas and Biglari Holdings.
Diversification Opportunities for Drinks Americas and Biglari Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Drinks and Biglari is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Drinks Americas Hldg and Biglari Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Drinks Americas 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 Drinks Americas Hldg 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 Drinks Americas i.e., Drinks Americas and Biglari Holdings go up and down completely randomly.
Pair Corralation between Drinks Americas and Biglari Holdings
If you would invest 22,656 in Biglari Holdings on May 1, 2025 and sell it today you would earn a total of 8,258 from holding Biglari Holdings or generate 36.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Drinks Americas Hldg vs. Biglari Holdings
Performance |
| Timeline |
| Drinks Americas Hldg |
| Biglari Holdings |
Drinks Americas and Biglari Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Drinks Americas and Biglari Holdings
The main advantage of trading using opposite Drinks Americas and Biglari Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Drinks Americas 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.| Drinks Americas vs. Rmy Cointreau SA | Drinks Americas vs. Pernod Ricard SA | Drinks Americas vs. Remy Cointreau SA | Drinks Americas vs. Diageo PLC ADR |
| Biglari Holdings vs. Biglari Holdings | Biglari Holdings vs. Flanigans Enterprises | Biglari Holdings vs. BJs Restaurants | Biglari Holdings vs. Nathans Famous |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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