Correlation Between BJs Wholesale and WIZZ AIR
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and WIZZ AIR 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 WIZZ AIR 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 WIZZ AIR HLDGUNSPADR4, you can compare the effects of market volatilities on BJs Wholesale and WIZZ AIR 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 WIZZ AIR. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and WIZZ AIR.
Diversification Opportunities for BJs Wholesale and WIZZ AIR
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BJs and WIZZ is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and WIZZ AIR HLDGUNSPADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WIZZ AIR HLDGUNSPADR4 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 WIZZ AIR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WIZZ AIR HLDGUNSPADR4 has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and WIZZ AIR go up and down completely randomly.
Pair Corralation between BJs Wholesale and WIZZ AIR
Assuming the 90 days horizon BJs Wholesale Club is expected to generate 0.45 times more return on investment than WIZZ AIR. However, BJs Wholesale Club is 2.25 times less risky than WIZZ AIR. It trades about 0.05 of its potential returns per unit of risk. WIZZ AIR HLDGUNSPADR4 is currently generating about -0.02 per unit of risk. If you would invest 6,350 in BJs Wholesale Club on October 13, 2024 and sell it today you would earn a total of 2,750 from holding BJs Wholesale Club or generate 43.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. WIZZ AIR HLDGUNSPADR4
Performance |
| Timeline |
| BJs Wholesale Club |
| WIZZ AIR HLDGUNSPADR4 |
BJs Wholesale and WIZZ AIR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and WIZZ AIR
The main advantage of trading using opposite BJs Wholesale and WIZZ AIR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, WIZZ AIR 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 WIZZ AIR will offset losses from the drop in WIZZ AIR's long position.| BJs Wholesale vs. HEALTHSTREAM | BJs Wholesale vs. Siemens Healthineers AG | BJs Wholesale vs. Sims Metal Management | BJs Wholesale vs. WESANA HEALTH HOLD |
| WIZZ AIR vs. Nanjing Panda Electronics | WIZZ AIR vs. STORE ELECTRONIC | WIZZ AIR vs. Burlington Stores | WIZZ AIR vs. BJs Wholesale Club |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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