Correlation Between BJs Restaurants and Grupo Televisa
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Grupo Televisa 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 Grupo Televisa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Grupo Televisa SAB, you can compare the effects of market volatilities on BJs Restaurants and Grupo Televisa 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 Grupo Televisa. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Grupo Televisa.
Diversification Opportunities for BJs Restaurants and Grupo Televisa
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BJs and Grupo is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Grupo Televisa SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Televisa SAB 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 Grupo Televisa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Televisa SAB has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Grupo Televisa go up and down completely randomly.
Pair Corralation between BJs Restaurants and Grupo Televisa
Given the investment horizon of 90 days BJs Restaurants is expected to generate 1.22 times more return on investment than Grupo Televisa. However, BJs Restaurants is 1.22 times more volatile than Grupo Televisa SAB. It trades about 0.07 of its potential returns per unit of risk. Grupo Televisa SAB is currently generating about -0.38 per unit of risk. If you would invest 3,709 in BJs Restaurants on September 1, 2024 and sell it today you would earn a total of 135.00 from holding BJs Restaurants or generate 3.64% 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. Grupo Televisa SAB
Performance |
| Timeline |
| BJs Restaurants |
| Grupo Televisa SAB |
BJs Restaurants and Grupo Televisa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Grupo Televisa
The main advantage of trading using opposite BJs Restaurants and Grupo Televisa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Grupo Televisa 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 Grupo Televisa will offset losses from the drop in Grupo Televisa'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 |
| Grupo Televisa vs. Orange SA ADR | Grupo Televisa vs. Telefonica Brasil SA | Grupo Televisa vs. Telefonica SA ADR | Grupo Televisa vs. Liberty Broadband Srs |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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