Correlation Between Biglari Holdings and ANZNZ

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

By analyzing existing cross correlation between Biglari Holdings and ANZNZ 2166 18 FEB 25, you can compare the effects of market volatilities on Biglari Holdings and ANZNZ 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 ANZNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and ANZNZ.

Diversification Opportunities for Biglari Holdings and ANZNZ

0.63

Correlation Coefficient

Biglari Holdings  ANZNZ

Poor diversification

The 3 months correlation between Biglari and ANZNZ is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and ANZNZ 2166 18 FEB 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANZNZ 2166 18 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 ANZNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANZNZ 2166 18 has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and ANZNZ go up and down completely randomly.

Pair Corralation between Biglari Holdings and ANZNZ

Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 2.23 times more return on investment than ANZNZ. However, Biglari Holdings is 2.23 times more volatile than ANZNZ 2166 18 FEB 25. It trades about 0.28 of its potential returns per unit of risk. ANZNZ 2166 18 FEB 25 is currently generating about -0.2 per unit of risk. If you would invest  16,542  in Biglari Holdings on October 3, 2024 and sell it today you would earn a total of  9,058  from holding Biglari Holdings or generate 54.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	32.26%
Values	Daily Returns

Biglari Holdings  vs.  ANZNZ 2166 18 FEB 25

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 fragile technical indicators, Biglari Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

ANZNZ 2166 18

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ANZNZ 2166 18 FEB 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for ANZNZ 2166 18 FEB 25 investors.

Pair Trading with Biglari Holdings and ANZNZ

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

The idea behind Biglari Holdings and ANZNZ 2166 18 FEB 25 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 Stocks Directory module to find actively traded stocks across global markets.