Correlation Between Akanda Corp and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Akanda Corp and BJs Restaurants 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 Akanda Corp and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akanda Corp and BJs Restaurants, you can compare the effects of market volatilities on Akanda Corp and BJs Restaurants 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 Akanda Corp with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akanda Corp and BJs Restaurants.
Diversification Opportunities for Akanda Corp and BJs Restaurants
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Akanda and BJs is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Akanda Corp and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and Akanda Corp 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 Akanda Corp are associated (or correlated) with BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of Akanda Corp i.e., Akanda Corp and BJs Restaurants go up and down completely randomly.
Pair Corralation between Akanda Corp and BJs Restaurants
Given the investment horizon of 90 days Akanda Corp is expected to under-perform the BJs Restaurants. In addition to that, Akanda Corp is 1.59 times more volatile than BJs Restaurants. It trades about -0.24 of its total potential returns per unit of risk. BJs Restaurants is currently generating about 0.0 per unit of volatility. If you would invest 3,577 in BJs Restaurants on August 25, 2024 and sell it today you would lose (43.00) from holding BJs Restaurants or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akanda Corp vs. BJs Restaurants
Performance |
| Timeline |
| Akanda Corp |
| BJs Restaurants |
Akanda Corp and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akanda Corp and BJs Restaurants
The main advantage of trading using opposite Akanda Corp and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akanda Corp position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.| Akanda Corp vs. China SXT Pharmaceuticals | Akanda Corp vs. Petros Pharmaceuticals | Akanda Corp vs. GelStat Corp | Akanda Corp vs. Shuttle Pharmaceuticals |
| BJs Restaurants vs. Dine Brands Global | BJs Restaurants vs. Brinker International | BJs Restaurants vs. Bloomin Brands | BJs Restaurants vs. The Cheesecake Factory |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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