Correlation Between BJs Restaurants and ENTERGY
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By analyzing existing cross correlation between BJs Restaurants and ENTERGY TEX INC, you can compare the effects of market volatilities on BJs Restaurants and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and ENTERGY.
Diversification Opportunities for BJs Restaurants and ENTERGY
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BJs and ENTERGY is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and ENTERGY TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY TEX INC 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY TEX INC has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and ENTERGY go up and down completely randomly.
Pair Corralation between BJs Restaurants and ENTERGY
Given the investment horizon of 90 days BJs Restaurants is expected to generate 5.24 times more return on investment than ENTERGY. However, BJs Restaurants is 5.24 times more volatile than ENTERGY TEX INC. It trades about 0.04 of its potential returns per unit of risk. ENTERGY TEX INC is currently generating about 0.0 per unit of risk. If you would invest 3,324 in BJs Restaurants on September 3, 2024 and sell it today you would earn a total of 520.00 from holding BJs Restaurants or generate 15.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 82.02% |
| Values | Daily Returns |
BJs Restaurants vs. ENTERGY TEX INC
Performance |
| Timeline |
| BJs Restaurants |
| ENTERGY TEX INC |
BJs Restaurants and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and ENTERGY
The main advantage of trading using opposite BJs Restaurants and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY'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 |
| ENTERGY vs. RadNet Inc | ENTERGY vs. Cumberland Pharmaceuticals | ENTERGY vs. HUTCHMED DRC | ENTERGY vs. Repligen |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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