Correlation Between BJs Wholesale and ANTA SPORTS
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and ANTA SPORTS 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 ANTA SPORTS 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 ANTA SPORTS PRODUCT, you can compare the effects of market volatilities on BJs Wholesale and ANTA SPORTS 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 ANTA SPORTS. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and ANTA SPORTS.
Diversification Opportunities for BJs Wholesale and ANTA SPORTS
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BJs and ANTA is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and ANTA SPORTS PRODUCT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ANTA SPORTS PRODUCT 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 ANTA SPORTS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ANTA SPORTS PRODUCT has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and ANTA SPORTS go up and down completely randomly.
Pair Corralation between BJs Wholesale and ANTA SPORTS
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 0.85 times more return on investment than ANTA SPORTS. However, BJs Wholesale Club is 1.18 times less risky than ANTA SPORTS. It trades about 0.1 of its potential returns per unit of risk. ANTA SPORTS PRODUCT is currently generating about 0.03 per unit of risk. If you would invest 8,850 in BJs Wholesale Club on October 28, 2024 and sell it today you would earn a total of 300.00 from holding BJs Wholesale Club or generate 3.39% 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. ANTA SPORTS PRODUCT
Performance |
| Timeline |
| BJs Wholesale Club |
| ANTA SPORTS PRODUCT |
BJs Wholesale and ANTA SPORTS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and ANTA SPORTS
The main advantage of trading using opposite BJs Wholesale and ANTA SPORTS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, ANTA SPORTS 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 ANTA SPORTS will offset losses from the drop in ANTA SPORTS's long position.| BJs Wholesale vs. EVS Broadcast Equipment | BJs Wholesale vs. Diamyd Medical AB | BJs Wholesale vs. Gold Road Resources | BJs Wholesale vs. Liberty Broadband |
| ANTA SPORTS vs. Sterling Construction | ANTA SPORTS vs. AUST AGRICULTURAL | ANTA SPORTS vs. DAIRY FARM INTL | ANTA SPORTS vs. United Utilities Group |
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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |