Correlation Between BJs Wholesale and MARKET VECTR
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and MARKET VECTR 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 MARKET VECTR 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 MARKET VECTR RETAIL, you can compare the effects of market volatilities on BJs Wholesale and MARKET VECTR 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 MARKET VECTR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and MARKET VECTR.
Diversification Opportunities for BJs Wholesale and MARKET VECTR
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between BJs and MARKET is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and MARKET VECTR RETAIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARKET VECTR RETAIL 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 MARKET VECTR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARKET VECTR RETAIL has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and MARKET VECTR go up and down completely randomly.
Pair Corralation between BJs Wholesale and MARKET VECTR
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 2.16 times more return on investment than MARKET VECTR. However, BJs Wholesale is 2.16 times more volatile than MARKET VECTR RETAIL. It trades about 0.11 of its potential returns per unit of risk. MARKET VECTR RETAIL is currently generating about 0.12 per unit of risk. If you would invest 6,100 in BJs Wholesale Club on November 3, 2024 and sell it today you would earn a total of 3,350 from holding BJs Wholesale Club or generate 54.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.8% |
| Values | Daily Returns |
BJs Wholesale Club vs. MARKET VECTR RETAIL
Performance |
| Timeline |
| BJs Wholesale Club |
| MARKET VECTR RETAIL |
BJs Wholesale and MARKET VECTR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and MARKET VECTR
The main advantage of trading using opposite BJs Wholesale and MARKET VECTR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, MARKET VECTR 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 MARKET VECTR will offset losses from the drop in MARKET VECTR's long position.| BJs Wholesale vs. INTERCONT HOTELS | BJs Wholesale vs. Virtus Investment Partners | BJs Wholesale vs. Scottish Mortgage Investment | BJs Wholesale vs. CHRYSALIS INVESTMENTS LTD |
| MARKET VECTR vs. Pebblebrook Hotel Trust | MARKET VECTR vs. Computershare Limited | MARKET VECTR vs. BRAEMAR HOTELS RES | MARKET VECTR vs. Park Hotels Resorts |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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