Correlation Between BJs Restaurants and AW Revenue
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and AW Revenue 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 AW Revenue into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and AW Revenue Royalties, you can compare the effects of market volatilities on BJs Restaurants and AW Revenue 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 AW Revenue. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and AW Revenue.
Diversification Opportunities for BJs Restaurants and AW Revenue
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and AWRRF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and AW Revenue Royalties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AW Revenue Royalties 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 AW Revenue. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AW Revenue Royalties has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and AW Revenue go up and down completely randomly.
Pair Corralation between BJs Restaurants and AW Revenue
If you would invest 3,482 in BJs Restaurants on November 30, 2024 and sell it today you would earn a total of 331.00 from holding BJs Restaurants or generate 9.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BJs Restaurants vs. AW Revenue Royalties
Performance |
| Timeline |
| BJs Restaurants |
| AW Revenue Royalties |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BJs Restaurants and AW Revenue Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and AW Revenue
The main advantage of trading using opposite BJs Restaurants and AW Revenue positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, AW Revenue 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 AW Revenue will offset losses from the drop in AW Revenue's long position.| BJs Restaurants vs. Dine Brands Global | BJs Restaurants vs. Brinker International | BJs Restaurants vs. Bloomin Brands | BJs Restaurants vs. The Cheesecake Factory |
| AW Revenue vs. Teleflex Incorporated | AW Revenue vs. VF Corporation | AW Revenue vs. Tapestry | AW Revenue vs. Aquestive Therapeutics |
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 Stocks Directory module to find actively traded stocks across global markets.
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