Correlation Between BJs Wholesale and Stryve Foods
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and Stryve Foods 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 Stryve Foods 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 Stryve Foods, you can compare the effects of market volatilities on BJs Wholesale and Stryve Foods 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 Stryve Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and Stryve Foods.
Diversification Opportunities for BJs Wholesale and Stryve Foods
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between BJs and Stryve is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and Stryve Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stryve Foods 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 Stryve Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stryve Foods has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and Stryve Foods go up and down completely randomly.
Pair Corralation between BJs Wholesale and Stryve Foods
Allowing for the 90-day total investment horizon BJs Wholesale is expected to generate 3.42 times less return on investment than Stryve Foods. But when comparing it to its historical volatility, BJs Wholesale Club is 14.87 times less risky than Stryve Foods. It trades about 0.31 of its potential returns per unit of risk. Stryve Foods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.67 in Stryve Foods on November 3, 2024 and sell it today you would lose (0.17) from holding Stryve Foods or give up 25.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BJs Wholesale Club vs. Stryve Foods
Performance |
| Timeline |
| BJs Wholesale Club |
| Stryve Foods |
BJs Wholesale and Stryve Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and Stryve Foods
The main advantage of trading using opposite BJs Wholesale and Stryve Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, Stryve Foods 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 Stryve Foods will offset losses from the drop in Stryve Foods' long position.| BJs Wholesale vs. Dollar Tree | BJs Wholesale vs. Dicks Sporting Goods | BJs Wholesale vs. Williams Sonoma | BJs Wholesale vs. Dillards |
| Stryve Foods vs. Stryve Foods | Stryve Foods vs. Talkspace | Stryve Foods vs. AEye Inc | Stryve Foods vs. Microvast Holdings |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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