Correlation Between BJs Wholesale and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and ARDAGH METAL 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 ARDAGH METAL 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 ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on BJs Wholesale and ARDAGH METAL 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 ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and ARDAGH METAL.
Diversification Opportunities for BJs Wholesale and ARDAGH METAL
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between BJs and ARDAGH is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL 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 ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and ARDAGH METAL go up and down completely randomly.
Pair Corralation between BJs Wholesale and ARDAGH METAL
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 0.32 times more return on investment than ARDAGH METAL. However, BJs Wholesale Club is 3.13 times less risky than ARDAGH METAL. It trades about -0.17 of its potential returns per unit of risk. ARDAGH METAL PACDL 0001 is currently generating about -0.21 per unit of risk. If you would invest 9,350 in BJs Wholesale Club on September 24, 2024 and sell it today you would lose (400.00) from holding BJs Wholesale Club or give up 4.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| BJs Wholesale Club |
| ARDAGH METAL PACDL |
BJs Wholesale and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and ARDAGH METAL
The main advantage of trading using opposite BJs Wholesale and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| BJs Wholesale vs. Walmart | BJs Wholesale vs. Walmart | BJs Wholesale vs. Costco Wholesale | BJs Wholesale vs. Target |
| ARDAGH METAL vs. Electronic Arts | ARDAGH METAL vs. BJs Wholesale Club | ARDAGH METAL vs. National Retail Properties | ARDAGH METAL vs. Meiko Electronics Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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