Correlation Between BJs Wholesale and International Game
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and International Game 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 International Game 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 International Game Technology, you can compare the effects of market volatilities on BJs Wholesale and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and International Game.
Diversification Opportunities for BJs Wholesale and International Game
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BJs and International is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and International Game go up and down completely randomly.
Pair Corralation between BJs Wholesale and International Game
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 0.77 times more return on investment than International Game. However, BJs Wholesale Club is 1.31 times less risky than International Game. It trades about 0.05 of its potential returns per unit of risk. International Game Technology is currently generating about -0.01 per unit of risk. If you would invest 7,100 in BJs Wholesale Club on December 4, 2024 and sell it today you would earn a total of 2,550 from holding BJs Wholesale Club or generate 35.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. International Game Technology
Performance |
| Timeline |
| BJs Wholesale Club |
| International Game |
BJs Wholesale and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and International Game
The main advantage of trading using opposite BJs Wholesale and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game'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 |
| International Game vs. Molina Healthcare | International Game vs. Kingdee International Software | International Game vs. Phibro Animal Health | International Game vs. CLOVER HEALTH INV |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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