Correlation Between BJs Wholesale and PT Bank
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and PT Bank 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 PT Bank 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 PT Bank Central, you can compare the effects of market volatilities on BJs Wholesale and PT Bank 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 PT Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and PT Bank.
Diversification Opportunities for BJs Wholesale and PT Bank
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BJs and BZG2 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and PT Bank Central in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT Bank Central 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 PT Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT Bank Central has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and PT Bank go up and down completely randomly.
Pair Corralation between BJs Wholesale and PT Bank
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 0.34 times more return on investment than PT Bank. However, BJs Wholesale Club is 2.96 times less risky than PT Bank. It trades about 0.15 of its potential returns per unit of risk. PT Bank Central is currently generating about -0.07 per unit of risk. If you would invest 9,400 in BJs Wholesale Club on November 27, 2024 and sell it today you would earn a total of 400.00 from holding BJs Wholesale Club or generate 4.26% 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. PT Bank Central
Performance |
| Timeline |
| BJs Wholesale Club |
| PT Bank Central |
BJs Wholesale and PT Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and PT Bank
The main advantage of trading using opposite BJs Wholesale and PT Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, PT Bank 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 PT Bank will offset losses from the drop in PT Bank's long position.| BJs Wholesale vs. Walmart | BJs Wholesale vs. Walmart | BJs Wholesale vs. Costco Wholesale | BJs Wholesale vs. Target |
| PT Bank vs. GERATHERM MEDICAL | PT Bank vs. Zurich Insurance Group | PT Bank vs. Genertec Universal Medical | PT Bank vs. ScanSource |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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