Correlation Between BJs Wholesale and Wing Yip
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and Wing Yip 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 Wing Yip 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 Wing Yip Food, you can compare the effects of market volatilities on BJs Wholesale and Wing Yip 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 Wing Yip. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and Wing Yip.
Diversification Opportunities for BJs Wholesale and Wing Yip
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BJs and Wing is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and Wing Yip Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wing Yip Food 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 Wing Yip. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wing Yip Food has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and Wing Yip go up and down completely randomly.
Pair Corralation between BJs Wholesale and Wing Yip
Allowing for the 90-day total investment horizon BJs Wholesale is expected to generate 245.95 times less return on investment than Wing Yip. But when comparing it to its historical volatility, BJs Wholesale Club is 186.16 times less risky than Wing Yip. It trades about 0.22 of its potential returns per unit of risk. Wing Yip Food is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 0.00 in Wing Yip Food on September 12, 2024 and sell it today you would earn a total of 438.00 from holding Wing Yip Food or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 18.75% |
| Values | Daily Returns |
BJs Wholesale Club vs. Wing Yip Food
Performance |
| Timeline |
| BJs Wholesale Club |
| Wing Yip Food |
BJs Wholesale and Wing Yip Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and Wing Yip
The main advantage of trading using opposite BJs Wholesale and Wing Yip positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, Wing Yip 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 Wing Yip will offset losses from the drop in Wing Yip's long position.| BJs Wholesale vs. Dollar Tree | BJs Wholesale vs. Dicks Sporting Goods | BJs Wholesale vs. Williams Sonoma | BJs Wholesale vs. Dillards |
| Wing Yip vs. Kellanova | Wing Yip vs. Lamb Weston Holdings | Wing Yip vs. Borealis Foods | Wing Yip vs. Central Garden Pet |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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