Correlation Between Biglari Holdings and Bukit Jalil

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

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

Diversification Opportunities for Biglari Holdings and Bukit Jalil

-0.68

Correlation Coefficient

Biglari Holdings  Bukit Jalil

Excellent diversification

The 3 months correlation between Biglari and Bukit is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Biglari Holdings and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global 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 Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of Biglari Holdings i.e., Biglari Holdings and Bukit Jalil go up and down completely randomly.

Pair Corralation between Biglari Holdings and Bukit Jalil

Allowing for the 90-day total investment horizon Biglari Holdings is expected to generate 1.93 times less return on investment than Bukit Jalil. But when comparing it to its historical volatility, Biglari Holdings is 5.91 times less risky than Bukit Jalil. It trades about 0.38 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  10.00  in Bukit Jalil Global on September 13, 2024 and sell it today you would earn a total of  1.00  from holding Bukit Jalil Global or generate 10.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	47.62%
Values	Daily Returns

Biglari Holdings  vs.  Bukit Jalil Global

Biglari Holdings

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Biglari Holdings are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady technical indicators, Biglari Holdings demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Bukit Jalil Global

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bukit Jalil Global has generated negative risk-adjusted returns adding no value to investors with long positions. Even with fragile performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in January 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Biglari Holdings and Bukit Jalil

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

The idea behind Biglari Holdings and Bukit Jalil Global 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.