Correlation Between BJs Restaurants and Aegean Airlines
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Aegean Airlines 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 Restaurants and Aegean Airlines into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Aegean Airlines SA, you can compare the effects of market volatilities on BJs Restaurants and Aegean Airlines 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 Restaurants with a short position of Aegean Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Aegean Airlines.
Diversification Opportunities for BJs Restaurants and Aegean Airlines
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and Aegean is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Aegean Airlines SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aegean Airlines SA and BJs Restaurants 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 Restaurants are associated (or correlated) with Aegean Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aegean Airlines SA has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Aegean Airlines go up and down completely randomly.
Pair Corralation between BJs Restaurants and Aegean Airlines
Given the investment horizon of 90 days BJs Restaurants is expected to generate 1.68 times more return on investment than Aegean Airlines. However, BJs Restaurants is 1.68 times more volatile than Aegean Airlines SA. It trades about 0.13 of its potential returns per unit of risk. Aegean Airlines SA is currently generating about -0.15 per unit of risk. If you would invest 3,272 in BJs Restaurants on September 5, 2024 and sell it today you would earn a total of 462.00 from holding BJs Restaurants or generate 14.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
BJs Restaurants vs. Aegean Airlines SA
Performance |
| Timeline |
| BJs Restaurants |
| Aegean Airlines SA |
BJs Restaurants and Aegean Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Aegean Airlines
The main advantage of trading using opposite BJs Restaurants and Aegean Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Aegean Airlines 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 Aegean Airlines will offset losses from the drop in Aegean Airlines' long position.| BJs Restaurants vs. Dine Brands Global | BJs Restaurants vs. Brinker International | BJs Restaurants vs. Bloomin Brands | BJs Restaurants vs. The Cheesecake Factory |
| Aegean Airlines vs. Copa Holdings SA | Aegean Airlines vs. United Airlines Holdings | Aegean Airlines vs. Delta Air Lines | Aegean Airlines vs. SkyWest |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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