Correlation Between BJs Restaurants and CAPITAL
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By analyzing existing cross correlation between BJs Restaurants and CAPITAL ONE FINANCIAL, you can compare the effects of market volatilities on BJs Restaurants and CAPITAL 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 CAPITAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and CAPITAL.
Diversification Opportunities for BJs Restaurants and CAPITAL
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and CAPITAL is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and CAPITAL ONE FINANCIAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPITAL ONE FINANCIAL 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 CAPITAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPITAL ONE FINANCIAL has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and CAPITAL go up and down completely randomly.
Pair Corralation between BJs Restaurants and CAPITAL
Given the investment horizon of 90 days BJs Restaurants is expected to generate 3.88 times more return on investment than CAPITAL. However, BJs Restaurants is 3.88 times more volatile than CAPITAL ONE FINANCIAL. It trades about 0.17 of its potential returns per unit of risk. CAPITAL ONE FINANCIAL is currently generating about -0.12 per unit of risk. If you would invest 2,982 in BJs Restaurants on September 3, 2024 and sell it today you would earn a total of 862.00 from holding BJs Restaurants or generate 28.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
BJs Restaurants vs. CAPITAL ONE FINANCIAL
Performance |
| Timeline |
| BJs Restaurants |
| CAPITAL ONE FINANCIAL |
BJs Restaurants and CAPITAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and CAPITAL
The main advantage of trading using opposite BJs Restaurants and CAPITAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, CAPITAL 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 CAPITAL will offset losses from the drop in CAPITAL'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 |
| CAPITAL vs. BJs Restaurants | CAPITAL vs. AMCON Distributing | CAPITAL vs. Shake Shack | CAPITAL vs. Chipotle Mexican Grill |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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