Correlation Between BJs Wholesale and CHEMICAL INDUSTRIES
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES, you can compare the effects of market volatilities on BJs Wholesale and CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and CHEMICAL INDUSTRIES.
Diversification Opportunities for BJs Wholesale and CHEMICAL INDUSTRIES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and CHEMICAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and CHEMICAL INDUSTRIES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEMICAL INDUSTRIES has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and CHEMICAL INDUSTRIES go up and down completely randomly.
Pair Corralation between BJs Wholesale and CHEMICAL INDUSTRIES
If you would invest 7,700 in BJs Wholesale Club on September 1, 2024 and sell it today you would earn a total of 1,350 from holding BJs Wholesale Club or generate 17.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. CHEMICAL INDUSTRIES
Performance |
| Timeline |
| BJs Wholesale Club |
| CHEMICAL INDUSTRIES |
BJs Wholesale and CHEMICAL INDUSTRIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and CHEMICAL INDUSTRIES
The main advantage of trading using opposite BJs Wholesale and CHEMICAL INDUSTRIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, CHEMICAL INDUSTRIES 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 CHEMICAL INDUSTRIES will offset losses from the drop in CHEMICAL INDUSTRIES'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 |
| CHEMICAL INDUSTRIES vs. Retail Estates NV | CHEMICAL INDUSTRIES vs. MOLSON RS BEVERAGE | CHEMICAL INDUSTRIES vs. Monster Beverage Corp | CHEMICAL INDUSTRIES vs. Ross Stores |
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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