Correlation Between FUTURE GAMING and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both FUTURE GAMING 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 FUTURE GAMING and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUTURE GAMING GRP and BJs Wholesale Club, you can compare the effects of market volatilities on FUTURE GAMING 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 FUTURE GAMING with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUTURE GAMING and BJs Wholesale.
Diversification Opportunities for FUTURE GAMING and BJs Wholesale
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FUTURE and BJs is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding FUTURE GAMING GRP 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 FUTURE 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 FUTURE GAMING GRP 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 FUTURE GAMING i.e., FUTURE GAMING and BJs Wholesale go up and down completely randomly.
Pair Corralation between FUTURE GAMING and BJs Wholesale
Assuming the 90 days trading horizon FUTURE GAMING is expected to generate 1.25 times less return on investment than BJs Wholesale. In addition to that, FUTURE GAMING is 3.24 times more volatile than BJs Wholesale Club. It trades about 0.03 of its total potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.11 per unit of volatility. If you would invest 5,800 in BJs Wholesale Club on September 14, 2024 and sell it today you would earn a total of 3,550 from holding BJs Wholesale Club or generate 61.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUTURE GAMING GRP vs. BJs Wholesale Club
Performance |
| Timeline |
| FUTURE GAMING GRP |
| BJs Wholesale Club |
FUTURE GAMING and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUTURE GAMING and BJs Wholesale
The main advantage of trading using opposite FUTURE GAMING and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUTURE GAMING 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.| FUTURE GAMING vs. Scientific Games | FUTURE GAMING vs. International Game Technology | FUTURE GAMING vs. Superior Plus Corp | FUTURE GAMING vs. SIVERS SEMICONDUCTORS AB |
| BJs Wholesale vs. PennyMac Mortgage Investment | BJs Wholesale vs. COSTCO WHOLESALE CDR | BJs Wholesale vs. JIAHUA STORES | BJs Wholesale vs. New Residential Investment |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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