Correlation Between BJs Restaurants and Tefron
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Tefron 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 Tefron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Tefron, you can compare the effects of market volatilities on BJs Restaurants and Tefron 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 Tefron. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Tefron.
Diversification Opportunities for BJs Restaurants and Tefron
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and Tefron is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Tefron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tefron 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 Tefron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tefron has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Tefron go up and down completely randomly.
Pair Corralation between BJs Restaurants and Tefron
If you would invest 3,127 in BJs Restaurants on September 2, 2024 and sell it today you would earn a total of 717.00 from holding BJs Restaurants or generate 22.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.27% |
| Values | Daily Returns |
BJs Restaurants vs. Tefron
Performance |
| Timeline |
| BJs Restaurants |
| Tefron |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BJs Restaurants and Tefron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Tefron
The main advantage of trading using opposite BJs Restaurants and Tefron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Tefron 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 Tefron will offset losses from the drop in Tefron'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 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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