Correlation Between Biglari Holdings and GLENLN

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

By analyzing existing cross correlation between Biglari Holdings and GLENLN 4 16 APR 25, you can compare the effects of market volatilities on Biglari Holdings and GLENLN 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 GLENLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and GLENLN.

Diversification Opportunities for Biglari Holdings and GLENLN

-0.46

Correlation Coefficient

Biglari Holdings  GLENLN

Very good diversification

The 3 months correlation between Biglari and GLENLN is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and GLENLN 4 16 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GLENLN 4 16 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 GLENLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GLENLN 4 16 has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and GLENLN go up and down completely randomly.

Pair Corralation between Biglari Holdings and GLENLN

Allowing for the 90-day total investment horizon Biglari Holdings is expected to under-perform the GLENLN. In addition to that, Biglari Holdings is 3.63 times more volatile than GLENLN 4 16 APR 25. It trades about -0.09 of its total potential returns per unit of risk. GLENLN 4 16 APR 25 is currently generating about -0.15 per unit of volatility. If you would invest  9,968  in GLENLN 4 16 APR 25 on December 30, 2024 and sell it today you would lose (252.00) from holding GLENLN 4 16 APR 25 or give up 2.53% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	37.1%
Values	Daily Returns

Biglari Holdings  vs.  GLENLN 4 16 APR 25

Biglari Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Biglari Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

GLENLN 4 16

Risk-Adjusted Performance

Very Weak

Over the last 90 days GLENLN 4 16 APR 25 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for GLENLN 4 16 APR 25 investors.

Pair Trading with Biglari Holdings and GLENLN

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

The idea behind Biglari Holdings and GLENLN 4 16 APR 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.