Correlation Between AVITA Medical and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both AVITA Medical 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 AVITA Medical and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AVITA Medical and BJs Restaurants, you can compare the effects of market volatilities on AVITA Medical 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 AVITA Medical with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVITA Medical and BJs Restaurants.
Diversification Opportunities for AVITA Medical and BJs Restaurants
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AVITA and BJs is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding AVITA Medical and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and AVITA Medical 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 AVITA Medical 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 AVITA Medical i.e., AVITA Medical and BJs Restaurants go up and down completely randomly.
Pair Corralation between AVITA Medical and BJs Restaurants
Assuming the 90 days trading horizon AVITA Medical is expected to generate 2.77 times less return on investment than BJs Restaurants. In addition to that, AVITA Medical is 1.63 times more volatile than BJs Restaurants. It trades about 0.01 of its total potential returns per unit of risk. BJs Restaurants is currently generating about 0.03 per unit of volatility. If you would invest 2,900 in BJs Restaurants on September 1, 2024 and sell it today you would earn a total of 680.00 from holding BJs Restaurants or generate 23.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVITA Medical vs. BJs Restaurants
Performance |
| Timeline |
| AVITA Medical |
| BJs Restaurants |
AVITA Medical and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVITA Medical and BJs Restaurants
The main advantage of trading using opposite AVITA Medical and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVITA Medical 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.| AVITA Medical vs. Perma Fix Environmental Services | AVITA Medical vs. RELIANCE STEEL AL | AVITA Medical vs. Caltagirone SpA | AVITA Medical vs. Reliance Steel Aluminum |
| BJs Restaurants vs. HEMISPHERE EGY | BJs Restaurants vs. KRISPY KREME DL 01 | BJs Restaurants vs. ADRIATIC METALS LS 013355 | BJs Restaurants vs. Cogent Communications Holdings |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |