Correlation Between BJs Wholesale and JINS HOLDINGS
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and JINS HOLDINGS 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 JINS HOLDINGS 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 JINS HOLDINGS INC, you can compare the effects of market volatilities on BJs Wholesale and JINS HOLDINGS 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 JINS HOLDINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and JINS HOLDINGS.
Diversification Opportunities for BJs Wholesale and JINS HOLDINGS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BJs and JINS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and JINS HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JINS HOLDINGS INC 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 JINS HOLDINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JINS HOLDINGS INC has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and JINS HOLDINGS go up and down completely randomly.
Pair Corralation between BJs Wholesale and JINS HOLDINGS
Assuming the 90 days horizon BJs Wholesale Club is expected to under-perform the JINS HOLDINGS. But the stock apears to be less risky and, when comparing its historical volatility, BJs Wholesale Club is 2.15 times less risky than JINS HOLDINGS. The stock trades about -0.32 of its potential returns per unit of risk. The JINS HOLDINGS INC is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 3,920 in JINS HOLDINGS INC on October 12, 2024 and sell it today you would earn a total of 220.00 from holding JINS HOLDINGS INC or generate 5.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. JINS HOLDINGS INC
Performance |
| Timeline |
| BJs Wholesale Club |
| JINS HOLDINGS INC |
BJs Wholesale and JINS HOLDINGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and JINS HOLDINGS
The main advantage of trading using opposite BJs Wholesale and JINS HOLDINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, JINS HOLDINGS 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 JINS HOLDINGS will offset losses from the drop in JINS HOLDINGS's long position.| BJs Wholesale vs. United Insurance Holdings | BJs Wholesale vs. Linedata Services SA | BJs Wholesale vs. Vienna Insurance Group | BJs Wholesale vs. Direct Line Insurance |
| JINS HOLDINGS vs. Nomad Foods | JINS HOLDINGS vs. BJs Wholesale Club | JINS HOLDINGS vs. Ross Stores | JINS HOLDINGS vs. TYSON FOODS A |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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