Correlation Between MOBILE FACTORY and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both MOBILE FACTORY and BJs Restaurants 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 MOBILE FACTORY and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MOBILE FACTORY INC and BJs Restaurants, you can compare the effects of market volatilities on MOBILE FACTORY and BJs Restaurants 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 MOBILE FACTORY with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of MOBILE FACTORY and BJs Restaurants.
Diversification Opportunities for MOBILE FACTORY and BJs Restaurants
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MOBILE and BJs is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding MOBILE FACTORY INC and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and MOBILE FACTORY 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 MOBILE FACTORY INC are associated (or correlated) with BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of MOBILE FACTORY i.e., MOBILE FACTORY and BJs Restaurants go up and down completely randomly.
Pair Corralation between MOBILE FACTORY and BJs Restaurants
Assuming the 90 days horizon MOBILE FACTORY INC is expected to under-perform the BJs Restaurants. But the stock apears to be less risky and, when comparing its historical volatility, MOBILE FACTORY INC is 1.05 times less risky than BJs Restaurants. The stock trades about -0.11 of its potential returns per unit of risk. The BJs Restaurants is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 3,580 in BJs Restaurants on October 30, 2024 and sell it today you would lose (140.00) from holding BJs Restaurants or give up 3.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MOBILE FACTORY INC vs. BJs Restaurants
Performance |
| Timeline |
| MOBILE FACTORY INC |
| BJs Restaurants |
MOBILE FACTORY and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MOBILE FACTORY and BJs Restaurants
The main advantage of trading using opposite MOBILE FACTORY and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MOBILE FACTORY position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.| MOBILE FACTORY vs. Entravision Communications | MOBILE FACTORY vs. CITIC Telecom International | MOBILE FACTORY vs. CONTAGIOUS GAMING INC | MOBILE FACTORY vs. Highlight Communications AG |
| BJs Restaurants vs. Warner Music Group | BJs Restaurants vs. INSURANCE AUST GRP | BJs Restaurants vs. INTERSHOP Communications Aktiengesellschaft | BJs Restaurants vs. Goosehead Insurance |
Check out your portfolio center.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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