Correlation Between BJs Restaurants and Evolution Gaming
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Evolution Gaming 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 Evolution Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Evolution Gaming Group, you can compare the effects of market volatilities on BJs Restaurants and Evolution Gaming 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 Evolution Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Evolution Gaming.
Diversification Opportunities for BJs Restaurants and Evolution Gaming
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between BJs and Evolution is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Evolution Gaming Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolution Gaming 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 Evolution Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolution Gaming has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Evolution Gaming go up and down completely randomly.
Pair Corralation between BJs Restaurants and Evolution Gaming
Given the investment horizon of 90 days BJs Restaurants is expected to generate 2.15 times less return on investment than Evolution Gaming. In addition to that, BJs Restaurants is 1.63 times more volatile than Evolution Gaming Group. It trades about 0.03 of its total potential returns per unit of risk. Evolution Gaming Group is currently generating about 0.11 per unit of volatility. If you would invest 7,759 in Evolution Gaming Group on January 12, 2025 and sell it today you would earn a total of 424.00 from holding Evolution Gaming Group or generate 5.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. Evolution Gaming Group
Performance |
| Timeline |
| BJs Restaurants |
| Evolution Gaming |
BJs Restaurants and Evolution Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Evolution Gaming
The main advantage of trading using opposite BJs Restaurants and Evolution Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Evolution Gaming 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 Evolution Gaming will offset losses from the drop in Evolution Gaming'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 |
| Evolution Gaming vs. Galaxy Gaming | Evolution Gaming vs. Everi Holdings | Evolution Gaming vs. Intema Solutions | Evolution Gaming vs. 888 Holdings |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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