Correlation Between BJs Wholesale and ANGLER GAMING
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and ANGLER GAMING 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 BJs Wholesale and ANGLER GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Wholesale Club and ANGLER GAMING PLC, you can compare the effects of market volatilities on BJs Wholesale and ANGLER GAMING 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 BJs Wholesale with a short position of ANGLER GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and ANGLER GAMING.
Diversification Opportunities for BJs Wholesale and ANGLER GAMING
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BJs and ANGLER is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and ANGLER GAMING PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANGLER GAMING PLC and BJs Wholesale 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 BJs Wholesale Club are associated (or correlated) with ANGLER GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANGLER GAMING PLC has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and ANGLER GAMING go up and down completely randomly.
Pair Corralation between BJs Wholesale and ANGLER GAMING
Assuming the 90 days horizon BJs Wholesale is expected to generate 2.7 times less return on investment than ANGLER GAMING. But when comparing it to its historical volatility, BJs Wholesale Club is 3.07 times less risky than ANGLER GAMING. It trades about 0.05 of its potential returns per unit of risk. ANGLER GAMING PLC is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 27.00 in ANGLER GAMING PLC on December 4, 2024 and sell it today you would earn a total of 13.00 from holding ANGLER GAMING PLC or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. ANGLER GAMING PLC
Performance |
| Timeline |
| BJs Wholesale Club |
| ANGLER GAMING PLC |
BJs Wholesale and ANGLER GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and ANGLER GAMING
The main advantage of trading using opposite BJs Wholesale and ANGLER GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, ANGLER GAMING 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 ANGLER GAMING will offset losses from the drop in ANGLER GAMING's long position.| BJs Wholesale vs. Zijin Mining Group | BJs Wholesale vs. Harmony Gold Mining | BJs Wholesale vs. Calibre Mining Corp | BJs Wholesale vs. Coeur Mining |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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