Correlation Between AEON STORES and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both AEON STORES and BJs Wholesale 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 AEON STORES and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AEON STORES and BJs Wholesale Club, you can compare the effects of market volatilities on AEON STORES and BJs Wholesale 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 AEON STORES with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of AEON STORES and BJs Wholesale.
Diversification Opportunities for AEON STORES and BJs Wholesale
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between AEON and BJs is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding AEON STORES and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club and AEON STORES 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 AEON STORES are associated (or correlated) with BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of AEON STORES i.e., AEON STORES and BJs Wholesale go up and down completely randomly.
Pair Corralation between AEON STORES and BJs Wholesale
If you would invest 8,650 in BJs Wholesale Club on November 5, 2024 and sell it today you would earn a total of 900.00 from holding BJs Wholesale Club or generate 10.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AEON STORES vs. BJs Wholesale Club
Performance |
| Timeline |
| AEON STORES |
| BJs Wholesale Club |
AEON STORES and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AEON STORES and BJs Wholesale
The main advantage of trading using opposite AEON STORES and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AEON STORES position performs unexpectedly, BJs Wholesale 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 Wholesale will offset losses from the drop in BJs Wholesale's long position.| AEON STORES vs. Delta Air Lines | AEON STORES vs. Corsair Gaming | AEON STORES vs. Norwegian Air Shuttle | AEON STORES vs. Ryanair Holdings plc |
| BJs Wholesale vs. BRIT AMER TOBACCO | BJs Wholesale vs. AEON STORES | BJs Wholesale vs. Scandinavian Tobacco Group | BJs Wholesale vs. RETAIL FOOD GROUP |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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