Correlation Between BJs Restaurants and RCL Foods
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and RCL Foods 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 RCL Foods into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and RCL Foods Limited, you can compare the effects of market volatilities on BJs Restaurants and RCL Foods 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 RCL Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and RCL Foods.
Diversification Opportunities for BJs Restaurants and RCL Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and RCL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and RCL Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RCL Foods Limited 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 RCL Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RCL Foods Limited has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and RCL Foods go up and down completely randomly.
Pair Corralation between BJs Restaurants and RCL Foods
If you would invest 3,482 in BJs Restaurants on November 19, 2025 and sell it today you would earn a total of 572.00 from holding BJs Restaurants or generate 16.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 96.77% |
| Values | Daily Returns |
BJs Restaurants vs. RCL Foods Limited
Performance |
| Timeline |
| BJs Restaurants |
| RCL Foods Limited |
BJs Restaurants and RCL Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and RCL Foods
The main advantage of trading using opposite BJs Restaurants and RCL Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, RCL Foods 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 RCL Foods will offset losses from the drop in RCL Foods' long position.| BJs Restaurants vs. Sweetgreen | BJs Restaurants vs. Cracker Barrel Old | BJs Restaurants vs. Liquidity Services | BJs Restaurants vs. Bloomin Brands |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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