Correlation Between Biglari Holdings and Agiliti
Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Agiliti 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 Biglari Holdings and Agiliti into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Biglari Holdings and Agiliti, you can compare the effects of market volatilities on Biglari Holdings and Agiliti 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 Biglari Holdings with a short position of Agiliti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Agiliti.
Diversification Opportunities for Biglari Holdings and Agiliti
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Biglari and Agiliti is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Agiliti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agiliti and Biglari Holdings 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 Biglari Holdings are associated (or correlated) with Agiliti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agiliti has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Agiliti go up and down completely randomly.
Pair Corralation between Biglari Holdings and Agiliti
Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 4.34 times more return on investment than Agiliti. However, Biglari Holdings is 4.34 times more volatile than Agiliti. It trades about 0.03 of its potential returns per unit of risk. Agiliti is currently generating about 0.03 per unit of risk. If you would invest 19,711 in Biglari Holdings on February 2, 2024 and sell it today you would earn a total of 176.00 from holding Biglari Holdings or generate 0.89% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Biglari Holdings vs. Agiliti
Performance |
Timeline |
Biglari Holdings |
Agiliti |
Biglari Holdings and Agiliti Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Biglari Holdings and Agiliti
The main advantage of trading using opposite Biglari Holdings and Agiliti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Agiliti 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 Agiliti will offset losses from the drop in Agiliti's long position.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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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