Correlation Between BJs Wholesale and WEBUY GLOBAL
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and WEBUY GLOBAL 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 WEBUY GLOBAL 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 WEBUY GLOBAL LTD, you can compare the effects of market volatilities on BJs Wholesale and WEBUY GLOBAL 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 WEBUY GLOBAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and WEBUY GLOBAL.
Diversification Opportunities for BJs Wholesale and WEBUY GLOBAL
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BJs and WEBUY is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and WEBUY GLOBAL LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WEBUY GLOBAL LTD 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 WEBUY GLOBAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WEBUY GLOBAL LTD has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and WEBUY GLOBAL go up and down completely randomly.
Pair Corralation between BJs Wholesale and WEBUY GLOBAL
Allowing for the 90-day total investment horizon BJs Wholesale Club is expected to generate 0.16 times more return on investment than WEBUY GLOBAL. However, BJs Wholesale Club is 6.41 times less risky than WEBUY GLOBAL. It trades about 0.1 of its potential returns per unit of risk. WEBUY GLOBAL LTD is currently generating about 0.0 per unit of risk. If you would invest 6,605 in BJs Wholesale Club on September 12, 2024 and sell it today you would earn a total of 3,247 from holding BJs Wholesale Club or generate 49.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. WEBUY GLOBAL LTD
Performance |
| Timeline |
| BJs Wholesale Club |
| WEBUY GLOBAL LTD |
BJs Wholesale and WEBUY GLOBAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and WEBUY GLOBAL
The main advantage of trading using opposite BJs Wholesale and WEBUY GLOBAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, WEBUY GLOBAL 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 WEBUY GLOBAL will offset losses from the drop in WEBUY GLOBAL's long position.| BJs Wholesale vs. Dollar Tree | BJs Wholesale vs. Dicks Sporting Goods | BJs Wholesale vs. Williams Sonoma | BJs Wholesale vs. Dillards |
| WEBUY GLOBAL vs. MOGU Inc | WEBUY GLOBAL vs. iPower Inc | WEBUY GLOBAL vs. Jeffs Brands | WEBUY GLOBAL vs. Kidpik Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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