Correlation Between BJs Restaurants and Nixxy,
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Nixxy, 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 Nixxy, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Nixxy, Inc, you can compare the effects of market volatilities on BJs Restaurants and Nixxy, 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 Nixxy,. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Nixxy,.
Diversification Opportunities for BJs Restaurants and Nixxy,
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BJs and Nixxy, is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Nixxy, Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nixxy, Inc 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 Nixxy,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nixxy, Inc has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Nixxy, go up and down completely randomly.
Pair Corralation between BJs Restaurants and Nixxy,
Given the investment horizon of 90 days BJs Restaurants is expected to generate 4.32 times less return on investment than Nixxy,. But when comparing it to its historical volatility, BJs Restaurants is 3.41 times less risky than Nixxy,. It trades about 0.03 of its potential returns per unit of risk. Nixxy, Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 472.00 in Nixxy, Inc on September 14, 2024 and sell it today you would earn a total of 62.00 from holding Nixxy, Inc or generate 13.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. Nixxy, Inc
Performance |
| Timeline |
| BJs Restaurants |
| Nixxy, Inc |
BJs Restaurants and Nixxy, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Nixxy,
The main advantage of trading using opposite BJs Restaurants and Nixxy, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Nixxy, 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 Nixxy, will offset losses from the drop in Nixxy,'s long position.The idea behind BJs Restaurants and Nixxy, Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Nixxy, vs. Biglari Holdings | Nixxy, vs. BJs Restaurants | Nixxy, vs. Rave Restaurant Group | Nixxy, vs. NETGEAR |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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