Two Equities Correlation Analysis

This model provides you with a quick lookup of cross correlation between two equities. Please specify two instruments to run the correlation.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 

Biglari Holdings Inc  vs.  DOW

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Biglari Holdings is expected to under-perform the DOW. In addition to that, Biglari Holdings is 3.07 times more volatile than DOW. It trades about -0.05 of its total potential returns per unit of risk. DOW is currently generating about -0.03 per unit of volatility. If you would invest  2,734,919  in DOW on September 21, 2019 and sell it today you would lose (57,899)  from holding DOW or give up 2.12% of portfolio value over 30 days.

Pair Corralation between Biglari Holdings and DOW

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Biglari Holdings and DOW

Biglari Holdings Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings Inc and DOW in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on DOW 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 DOW. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DOW has no effect on the direction of Biglari Holdings i.e. Biglari Holdings and DOW go up and down completely randomly.
See also your portfolio center. Please also try Idea Breakdown module to analyze constituents of all macroaxis ideas. macroaxis investment ideas are predefined, sector-focused investing themes.