Correlation Between BJs Restaurants and GD Entertainment
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and GD Entertainment 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 GD Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and GD Entertainment Technology, you can compare the effects of market volatilities on BJs Restaurants and GD Entertainment 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 GD Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and GD Entertainment.
Diversification Opportunities for BJs Restaurants and GD Entertainment
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between BJs and GDET is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and GD Entertainment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GD Entertainment Tec 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 GD Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GD Entertainment Tec has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and GD Entertainment go up and down completely randomly.
Pair Corralation between BJs Restaurants and GD Entertainment
If you would invest 3,730 in BJs Restaurants on August 29, 2024 and sell it today you would lose (24.00) from holding BJs Restaurants or give up 0.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. GD Entertainment Technology
Performance |
| Timeline |
| BJs Restaurants |
| GD Entertainment Tec |
BJs Restaurants and GD Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and GD Entertainment
The main advantage of trading using opposite BJs Restaurants and GD Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, GD Entertainment 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 GD Entertainment will offset losses from the drop in GD Entertainment'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 |
| GD Entertainment vs. Chester Mining | GD Entertainment vs. Park Hotels Resorts | GD Entertainment vs. BJs Restaurants | GD Entertainment vs. Oasis Hotel Resort |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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