Correlation Between BJs Restaurants and BLACK HAWK
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and BLACK HAWK 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 BLACK HAWK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and BLACK HAWK ACQUISITION, you can compare the effects of market volatilities on BJs Restaurants and BLACK HAWK 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 BLACK HAWK. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and BLACK HAWK.
Diversification Opportunities for BJs Restaurants and BLACK HAWK
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and BLACK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and BLACK HAWK ACQUISITION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BLACK HAWK ACQUISITION 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 BLACK HAWK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BLACK HAWK ACQUISITION has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and BLACK HAWK go up and down completely randomly.
Pair Corralation between BJs Restaurants and BLACK HAWK
If you would invest 3,455 in BJs Restaurants on September 2, 2024 and sell it today you would earn a total of 389.00 from holding BJs Restaurants or generate 11.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BJs Restaurants vs. BLACK HAWK ACQUISITION
Performance |
| Timeline |
| BJs Restaurants |
| BLACK HAWK ACQUISITION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BJs Restaurants and BLACK HAWK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and BLACK HAWK
The main advantage of trading using opposite BJs Restaurants and BLACK HAWK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, BLACK HAWK 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 BLACK HAWK will offset losses from the drop in BLACK HAWK'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 |
| BLACK HAWK vs. Voyager Acquisition Corp | BLACK HAWK vs. dMY Squared Technology | BLACK HAWK vs. YHN Acquisition I | BLACK HAWK vs. YHN Acquisition I |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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