Correlation Between BJs Wholesale and SpartanNash
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and SpartanNash 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 SpartanNash 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 SpartanNash Co, you can compare the effects of market volatilities on BJs Wholesale and SpartanNash 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 SpartanNash. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and SpartanNash.
Diversification Opportunities for BJs Wholesale and SpartanNash
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and SpartanNash is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and SpartanNash Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SpartanNash 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 SpartanNash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SpartanNash has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and SpartanNash go up and down completely randomly.
Pair Corralation between BJs Wholesale and SpartanNash
Allowing for the 90-day total investment horizon BJs Wholesale Club is expected to generate 0.68 times more return on investment than SpartanNash. However, BJs Wholesale Club is 1.48 times less risky than SpartanNash. It trades about 0.29 of its potential returns per unit of risk. SpartanNash Co is currently generating about -0.14 per unit of risk. If you would invest 8,494 in BJs Wholesale Club on August 31, 2024 and sell it today you would earn a total of 1,183 from holding BJs Wholesale Club or generate 13.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. SpartanNash Co
Performance |
| Timeline |
| BJs Wholesale Club |
| SpartanNash |
BJs Wholesale and SpartanNash Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and SpartanNash
The main advantage of trading using opposite BJs Wholesale and SpartanNash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, SpartanNash 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 SpartanNash will offset losses from the drop in SpartanNash's long position.| BJs Wholesale vs. Dollar Tree | BJs Wholesale vs. Dicks Sporting Goods | BJs Wholesale vs. Williams Sonoma | BJs Wholesale vs. Dillards |
| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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