Correlation Between FRACTAL GAMING and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both FRACTAL GAMING 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 FRACTAL GAMING and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRACTAL GAMING GROUP and BJs Restaurants, you can compare the effects of market volatilities on FRACTAL GAMING 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 FRACTAL GAMING with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRACTAL GAMING and BJs Restaurants.
Diversification Opportunities for FRACTAL GAMING and BJs Restaurants
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FRACTAL and BJs is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding FRACTAL GAMING GROUP and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and FRACTAL GAMING 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 FRACTAL GAMING GROUP 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 FRACTAL GAMING i.e., FRACTAL GAMING and BJs Restaurants go up and down completely randomly.
Pair Corralation between FRACTAL GAMING and BJs Restaurants
Assuming the 90 days horizon FRACTAL GAMING GROUP is expected to under-perform the BJs Restaurants. But the stock apears to be less risky and, when comparing its historical volatility, FRACTAL GAMING GROUP is 1.15 times less risky than BJs Restaurants. The stock trades about -0.08 of its potential returns per unit of risk. The BJs Restaurants is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,280 in BJs Restaurants on September 5, 2024 and sell it today you would earn a total of 180.00 from holding BJs Restaurants or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
FRACTAL GAMING GROUP vs. BJs Restaurants
Performance |
| Timeline |
| FRACTAL GAMING GROUP |
| BJs Restaurants |
FRACTAL GAMING and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRACTAL GAMING and BJs Restaurants
The main advantage of trading using opposite FRACTAL GAMING and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRACTAL GAMING 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.| FRACTAL GAMING vs. HP Inc | FRACTAL GAMING vs. Dell Technologies | FRACTAL GAMING vs. Western Digital | FRACTAL GAMING vs. SEIKO EPSON PADR |
| BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc |
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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