Correlation Between BJs Wholesale and DAX Index
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By analyzing existing cross correlation between BJs Wholesale Club and DAX Index, you can compare the effects of market volatilities on BJs Wholesale and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and DAX Index.
Diversification Opportunities for BJs Wholesale and DAX Index
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BJs and DAX is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and DAX Index go up and down completely randomly.
Pair Corralation between BJs Wholesale and DAX Index
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 2.43 times more return on investment than DAX Index. However, BJs Wholesale is 2.43 times more volatile than DAX Index. It trades about 0.14 of its potential returns per unit of risk. DAX Index is currently generating about 0.19 per unit of risk. If you would invest 7,800 in BJs Wholesale Club on October 25, 2024 and sell it today you would earn a total of 1,250 from holding BJs Wholesale Club or generate 16.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. DAX Index
Performance |
| Timeline |
BJs Wholesale and DAX Index Volatility Contrast
Predicted Return Density |
| Returns |
BJs Wholesale Club
Pair trading matchups for BJs Wholesale
DAX Index
Pair trading matchups for DAX Index
Pair Trading with BJs Wholesale and DAX Index
The main advantage of trading using opposite BJs Wholesale and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.| BJs Wholesale vs. Walmart | BJs Wholesale vs. Walmart | BJs Wholesale vs. Costco Wholesale | BJs Wholesale vs. Target |
| DAX Index vs. Retail Estates NV | DAX Index vs. AEON STORES | DAX Index vs. BJs Wholesale Club | DAX Index vs. Nanjing Panda Electronics |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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