Correlation Between BJs Wholesale and JIAHUA STORES
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and JIAHUA STORES 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 JIAHUA STORES 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 JIAHUA STORES, you can compare the effects of market volatilities on BJs Wholesale and JIAHUA STORES 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 JIAHUA STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and JIAHUA STORES.
Diversification Opportunities for BJs Wholesale and JIAHUA STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and JIAHUA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and JIAHUA STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JIAHUA STORES 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 JIAHUA STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JIAHUA STORES has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and JIAHUA STORES go up and down completely randomly.
Pair Corralation between BJs Wholesale and JIAHUA STORES
If you would invest 7,950 in BJs Wholesale Club on September 2, 2024 and sell it today you would earn a total of 1,100 from holding BJs Wholesale Club or generate 13.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
BJs Wholesale Club vs. JIAHUA STORES
Performance |
| Timeline |
| BJs Wholesale Club |
| JIAHUA STORES |
BJs Wholesale and JIAHUA STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and JIAHUA STORES
The main advantage of trading using opposite BJs Wholesale and JIAHUA STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, JIAHUA STORES 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 JIAHUA STORES will offset losses from the drop in JIAHUA STORES's long position.| BJs Wholesale vs. Superior Plus Corp | BJs Wholesale vs. NMI Holdings | BJs Wholesale vs. Origin Agritech | BJs Wholesale vs. SIVERS SEMICONDUCTORS AB |
| JIAHUA STORES vs. SIVERS SEMICONDUCTORS AB | JIAHUA STORES vs. Darden Restaurants | JIAHUA STORES vs. Reliance Steel Aluminum | JIAHUA STORES vs. Q2M Managementberatung AG |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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