Correlation Between BJs Restaurants and LOWES
Specify exactly 2 symbols:
By analyzing existing cross correlation between BJs Restaurants and LOWES PANIES INC, you can compare the effects of market volatilities on BJs Restaurants and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and LOWES.
Diversification Opportunities for BJs Restaurants and LOWES
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and LOWES is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and LOWES go up and down completely randomly.
Pair Corralation between BJs Restaurants and LOWES
Given the investment horizon of 90 days BJs Restaurants is expected to generate 2.65 times more return on investment than LOWES. However, BJs Restaurants is 2.65 times more volatile than LOWES PANIES INC. It trades about 0.03 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.04 per unit of risk. If you would invest 3,315 in BJs Restaurants on September 14, 2024 and sell it today you would earn a total of 270.00 from holding BJs Restaurants or generate 8.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.79% |
| Values | Daily Returns |
BJs Restaurants vs. LOWES PANIES INC
Performance |
| Timeline |
| BJs Restaurants |
| LOWES PANIES INC |
BJs Restaurants and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and LOWES
The main advantage of trading using opposite BJs Restaurants and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.The idea behind BJs Restaurants and LOWES PANIES INC pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| LOWES vs. Summit Midstream | LOWES vs. Kinetik Holdings | LOWES vs. United Utilities Group | LOWES vs. Verra Mobility Corp |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |