Correlation Between Biglari Holdings and Abacus Life,

Can any of the company-specific risk be diversified away by investing in both Biglari Holdings and Abacus Life, 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 Abacus Life, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Biglari Holdings and Abacus Life, 9875, you can compare the effects of market volatilities on Biglari Holdings and Abacus Life, 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 Abacus Life,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and Abacus Life,.

Diversification Opportunities for Biglari Holdings and Abacus Life,

0.8

Correlation Coefficient

Biglari Holdings  Abacus Life,

Very poor diversification

The 3 months correlation between Biglari and Abacus is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Abacus Life, 9875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abacus Life, 9875 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 Abacus Life,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abacus Life, 9875 has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Abacus Life, go up and down completely randomly.

Pair Corralation between Biglari Holdings and Abacus Life,

Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 2.93 times more return on investment than Abacus Life,. However, Biglari Holdings is 2.93 times more volatile than Abacus Life, 9875. It trades about 0.1 of its potential returns per unit of risk. Abacus Life, 9875 is currently generating about 0.09 per unit of risk. If you would invest  14,840  in Biglari Holdings on September 28, 2024 and sell it today you would earn a total of  10,960  from holding Biglari Holdings or generate 73.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	99.63%
Values	Daily Returns

Biglari Holdings  vs.  Abacus Life, 9875

Biglari Holdings

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Biglari Holdings are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical indicators, Biglari Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Abacus Life, 9875

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Abacus Life, 9875 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent essential indicators, Abacus Life, is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Biglari Holdings and Abacus Life,

The main advantage of trading using opposite Biglari Holdings and Abacus Life, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Biglari Holdings position performs unexpectedly, Abacus Life, 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 Abacus Life, will offset losses from the drop in Abacus Life,'s long position.

The idea behind Biglari Holdings and Abacus Life, 9875 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.