Correlation Between EVS Broadcast and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and BJs Wholesale 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 EVS Broadcast and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and BJs Wholesale Club, you can compare the effects of market volatilities on EVS Broadcast and BJs Wholesale 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 EVS Broadcast with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and BJs Wholesale.
Diversification Opportunities for EVS Broadcast and BJs Wholesale
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVS and BJs is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and BJs Wholesale go up and down completely randomly.
Pair Corralation between EVS Broadcast and BJs Wholesale
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to under-perform the BJs Wholesale. But the stock apears to be less risky and, when comparing its historical volatility, EVS Broadcast Equipment is 1.57 times less risky than BJs Wholesale. The stock trades about -0.05 of its potential returns per unit of risk. The BJs Wholesale Club is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 7,200 in BJs Wholesale Club on September 2, 2024 and sell it today you would earn a total of 1,850 from holding BJs Wholesale Club or generate 25.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. BJs Wholesale Club
Performance |
| Timeline |
| EVS Broadcast Equipment |
| BJs Wholesale Club |
EVS Broadcast and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and BJs Wholesale
The main advantage of trading using opposite EVS Broadcast and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, BJs Wholesale 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 Wholesale will offset losses from the drop in BJs Wholesale's long position.| EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc | EVS Broadcast vs. Apple Inc |
| BJs Wholesale vs. Superior Plus Corp | BJs Wholesale vs. NMI Holdings | BJs Wholesale vs. Origin Agritech | BJs Wholesale vs. SIVERS SEMICONDUCTORS AB |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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