Correlation Between Biglari Holdings and Mineralys Therapeutics,

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

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

Diversification Opportunities for Biglari Holdings and Mineralys Therapeutics,

-0.54

Correlation Coefficient

Biglari Holdings  Mineralys Therapeutics,

Excellent diversification

The 3 months correlation between Biglari and Mineralys is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Mineralys Therapeutics, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mineralys Therapeutics, 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 Mineralys Therapeutics,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mineralys Therapeutics, has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Mineralys Therapeutics, go up and down completely randomly.

Pair Corralation between Biglari Holdings and Mineralys Therapeutics,

Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 0.65 times more return on investment than Mineralys Therapeutics,. However, Biglari Holdings is 1.53 times less risky than Mineralys Therapeutics,. It trades about 0.25 of its potential returns per unit of risk. Mineralys Therapeutics, Common is currently generating about 0.04 per unit of risk. If you would invest  17,201  in Biglari Holdings on September 29, 2024 and sell it today you would earn a total of  8,519  from holding Biglari Holdings or generate 49.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Biglari Holdings  vs.  Mineralys Therapeutics, Common

Biglari Holdings

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Biglari Holdings are ranked lower than 19 (%) 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.

Mineralys Therapeutics,

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Mineralys Therapeutics, Common are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting basic indicators, Mineralys Therapeutics, may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Biglari Holdings and Mineralys Therapeutics,

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

The idea behind Biglari Holdings and Mineralys Therapeutics, Common 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.