Correlation Between ANT and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both ANT 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 ANT and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ANT and BJs Restaurants, you can compare the effects of market volatilities on ANT 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 ANT with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of ANT and BJs Restaurants.
Diversification Opportunities for ANT and BJs Restaurants
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ANT and BJs is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ANT and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and ANT 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 ANT 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 ANT i.e., ANT and BJs Restaurants go up and down completely randomly.
Pair Corralation between ANT and BJs Restaurants
Assuming the 90 days trading horizon ANT is expected to generate 11.61 times more return on investment than BJs Restaurants. However, ANT is 11.61 times more volatile than BJs Restaurants. It trades about 0.08 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.1 per unit of risk. If you would invest 401.00 in ANT on November 1, 2024 and sell it today you would lose (254.00) from holding ANT or give up 63.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 93.75% |
| Values | Daily Returns |
ANT vs. BJs Restaurants
Performance |
| Timeline |
| ANT |
| BJs Restaurants |
ANT and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ANT and BJs Restaurants
The main advantage of trading using opposite ANT and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ANT 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.The idea behind ANT and BJs Restaurants pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BJs Restaurants vs. PENN NATL GAMING | BJs Restaurants vs. GAMING FAC SA | BJs Restaurants vs. CONTAGIOUS GAMING INC | BJs Restaurants vs. TRADEDOUBLER AB SK |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |