Correlation Analysis Between Biglari Holdings and DOW

This module allows you to analyze existing cross correlation between Biglari Holdings and DOW. You can compare the effects of market volatilities on Biglari Holdings and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Biglari Holdings and DOW.
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 generate 3.2 times more return on investment than DOW. However, Biglari Holdings is 3.2 times more volatile than DOW. It trades about 0.06 of its potential returns per unit of risk. DOW is currently generating about 0.02 per unit of risk. If you would invest  10,273  in Biglari Holdings on August 22, 2019 and sell it today you would earn a total of  928.00  from holding Biglari Holdings or generate 9.03% return on investment over 30 days.

Pair Corralation between Biglari Holdings and DOW

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for Biglari Holdings and DOW

Biglari Holdings Inc diversification synergy

Very 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.