Correlation Between BJs Restaurants and Stagwell
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Stagwell 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 Stagwell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Stagwell, you can compare the effects of market volatilities on BJs Restaurants and Stagwell 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 Stagwell. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Stagwell.
Diversification Opportunities for BJs Restaurants and Stagwell
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BJs and Stagwell is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Stagwell in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stagwell 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 Stagwell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stagwell has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Stagwell go up and down completely randomly.
Pair Corralation between BJs Restaurants and Stagwell
Given the investment horizon of 90 days BJs Restaurants is expected to generate 0.74 times more return on investment than Stagwell. However, BJs Restaurants is 1.35 times less risky than Stagwell. It trades about 0.02 of its potential returns per unit of risk. Stagwell is currently generating about 0.01 per unit of risk. If you would invest 3,458 in BJs Restaurants on November 7, 2024 and sell it today you would earn a total of 227.00 from holding BJs Restaurants or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. Stagwell
Performance |
| Timeline |
| BJs Restaurants |
| Stagwell |
BJs Restaurants and Stagwell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Stagwell
The main advantage of trading using opposite BJs Restaurants and Stagwell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Stagwell 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 Stagwell will offset losses from the drop in Stagwell'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 |
| Stagwell vs. Innovid Corp | Stagwell vs. Interpublic Group of | Stagwell vs. Cimpress NV | Stagwell vs. Criteo Sa |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |