Correlation Analysis Between Starbucks and Biglari Holdings

Analyzing existing cross correlation between Starbucks Corporation and Biglari Holdings. You can compare the effects of market volatilities on Starbucks and Biglari Holdings 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 Starbucks with a short position of Biglari Holdings. See also your portfolio center. Please also check ongoing floating volatility patterns of Starbucks and Biglari Holdings.
Horizon     30 Days    Login   to change
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Comparative Performance

Starbucks  
1111

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Starbucks Corporation are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days. Inspite fairly fragile basic indicators, Starbucks may actually be approaching a critical reversion point that can send shares even higher in February 2020.
Biglari Holdings  
1919

Risk-Adjusted Performance

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 30 days. Despite nearly conflicting fundamental indicators, Biglari Holdings layed out solid returns over the last few months and may actually be approaching a breakup point.

Starbucks and Biglari Holdings Volatility Contrast

 Predicted Return Density 
    
  Returns 

Starbucks Corp.  vs.  Biglari Holdings Inc

 Performance (%) 
    
  Timeline 

Pair Volatility

Given the investment horizon of 30 days, Starbucks is expected to generate 3.36 times less return on investment than Biglari Holdings. But when comparing it to its historical volatility, Starbucks Corporation is 2.11 times less risky than Biglari Holdings. It trades about 0.18 of its potential returns per unit of risk. Biglari Holdings is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest  8,419  in Biglari Holdings on December 26, 2019 and sell it today you would earn a total of  3,176  from holding Biglari Holdings or generate 37.72% return on investment over 30 days.

Pair Corralation between Starbucks and Biglari Holdings

0.58
Time Period3 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Starbucks and Biglari Holdings

Starbucks Corp. diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Starbucks Corp. and Biglari Holdings Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Biglari Holdings and Starbucks 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 Starbucks Corporation are associated (or correlated) with Biglari Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biglari Holdings has no effect on the direction of Starbucks i.e. Starbucks and Biglari Holdings go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.