Correlation Between BJs Wholesale and ATOSS SOFTWARE
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and ATOSS SOFTWARE 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 ATOSS SOFTWARE 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 ATOSS SOFTWARE, you can compare the effects of market volatilities on BJs Wholesale and ATOSS SOFTWARE 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 ATOSS SOFTWARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and ATOSS SOFTWARE.
Diversification Opportunities for BJs Wholesale and ATOSS SOFTWARE
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BJs and ATOSS is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and ATOSS SOFTWARE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATOSS SOFTWARE 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 ATOSS SOFTWARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATOSS SOFTWARE has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and ATOSS SOFTWARE go up and down completely randomly.
Pair Corralation between BJs Wholesale and ATOSS SOFTWARE
Assuming the 90 days horizon BJs Wholesale is expected to generate 1.55 times less return on investment than ATOSS SOFTWARE. But when comparing it to its historical volatility, BJs Wholesale Club is 1.25 times less risky than ATOSS SOFTWARE. It trades about 0.05 of its potential returns per unit of risk. ATOSS SOFTWARE is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 6,712 in ATOSS SOFTWARE on September 12, 2024 and sell it today you would earn a total of 5,228 from holding ATOSS SOFTWARE or generate 77.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. ATOSS SOFTWARE
Performance |
| Timeline |
| BJs Wholesale Club |
| ATOSS SOFTWARE |
BJs Wholesale and ATOSS SOFTWARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and ATOSS SOFTWARE
The main advantage of trading using opposite BJs Wholesale and ATOSS SOFTWARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, ATOSS SOFTWARE 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 ATOSS SOFTWARE will offset losses from the drop in ATOSS SOFTWARE's long position.| BJs Wholesale vs. Walmart | BJs Wholesale vs. Costco Wholesale | BJs Wholesale vs. Dollarama | BJs Wholesale vs. Superior Plus Corp |
| ATOSS SOFTWARE vs. Apple Inc | ATOSS SOFTWARE vs. Apple Inc | ATOSS SOFTWARE vs. Apple Inc | ATOSS SOFTWARE vs. Apple Inc |
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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