Correlation Between BJs Restaurants and First Republic
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and First Republic 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 First Republic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and First Republic Bank, you can compare the effects of market volatilities on BJs Restaurants and First Republic 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 First Republic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and First Republic.
Diversification Opportunities for BJs Restaurants and First Republic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and First is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and First Republic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Republic Bank 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 First Republic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Republic Bank has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and First Republic go up and down completely randomly.
Pair Corralation between BJs Restaurants and First Republic
If you would invest 2,904 in BJs Restaurants on November 27, 2024 and sell it today you would earn a total of 895.00 from holding BJs Restaurants or generate 30.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BJs Restaurants vs. First Republic Bank
Performance |
| Timeline |
| BJs Restaurants |
| First Republic Bank |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BJs Restaurants and First Republic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and First Republic
The main advantage of trading using opposite BJs Restaurants and First Republic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, First Republic 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 First Republic will offset losses from the drop in First Republic's long position.| BJs Restaurants vs. Chipotle Mexican Grill | BJs Restaurants vs. Dominos Pizza Common | BJs Restaurants vs. Yum Brands | BJs Restaurants vs. The Wendys Co |
| First Republic vs. Westshore Terminals Investment | First Republic vs. Alternative Investment | First Republic vs. Direct Line Insurance | First Republic vs. Fidus Investment Corp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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