Correlation Between GREENX METALS and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both GREENX METALS 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 GREENX METALS and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GREENX METALS LTD and BJs Restaurants, you can compare the effects of market volatilities on GREENX METALS 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 GREENX METALS with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of GREENX METALS and BJs Restaurants.
Diversification Opportunities for GREENX METALS and BJs Restaurants
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between GREENX and BJs is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding GREENX METALS LTD and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and GREENX METALS 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 GREENX METALS LTD 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 GREENX METALS i.e., GREENX METALS and BJs Restaurants go up and down completely randomly.
Pair Corralation between GREENX METALS and BJs Restaurants
Assuming the 90 days trading horizon GREENX METALS LTD is expected to under-perform the BJs Restaurants. In addition to that, GREENX METALS is 1.95 times more volatile than BJs Restaurants. It trades about 0.0 of its total potential returns per unit of risk. BJs Restaurants is currently generating about 0.07 per unit of volatility. If you would invest 3,320 in BJs Restaurants on September 14, 2024 and sell it today you would earn a total of 100.00 from holding BJs Restaurants or generate 3.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GREENX METALS LTD vs. BJs Restaurants
Performance |
| Timeline |
| GREENX METALS LTD |
| BJs Restaurants |
GREENX METALS and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GREENX METALS and BJs Restaurants
The main advantage of trading using opposite GREENX METALS and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GREENX METALS 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.| GREENX METALS vs. Eidesvik Offshore ASA | GREENX METALS vs. Flutter Entertainment PLC | GREENX METALS vs. Solstad Offshore ASA | GREENX METALS vs. Seven West Media |
| BJs Restaurants vs. GREENX METALS LTD | BJs Restaurants vs. North American Construction | BJs Restaurants vs. Dairy Farm International | BJs Restaurants vs. DISTRICT METALS |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |