Correlation Between BJs Restaurants and RCL Foods

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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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.77%
ValuesDaily Returns

BJs Restaurants  vs.  RCL Foods Limited

 Performance 
       Timeline  
BJs Restaurants 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in BJs Restaurants are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, BJs Restaurants demonstrated solid returns over the last few months and may actually be approaching a breakup point.
RCL Foods Limited 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days RCL Foods Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, RCL Foods is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.
The idea behind BJs Restaurants and RCL Foods Limited 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.
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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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