Correlation Between BJs Restaurants and BATSLN
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By analyzing existing cross correlation between BJs Restaurants and BATSLN 475 01 NOV 42, you can compare the effects of market volatilities on BJs Restaurants and BATSLN 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 BATSLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and BATSLN.
Diversification Opportunities for BJs Restaurants and BATSLN
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BJs and BATSLN is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and BATSLN 475 01 NOV 42 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BATSLN 475 01 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 BATSLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BATSLN 475 01 has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and BATSLN go up and down completely randomly.
Pair Corralation between BJs Restaurants and BATSLN
Given the investment horizon of 90 days BJs Restaurants is expected to generate 1.19 times more return on investment than BATSLN. However, BJs Restaurants is 1.19 times more volatile than BATSLN 475 01 NOV 42. It trades about 0.11 of its potential returns per unit of risk. BATSLN 475 01 NOV 42 is currently generating about -0.13 per unit of risk. If you would invest 3,272 in BJs Restaurants on September 5, 2024 and sell it today you would earn a total of 370.00 from holding BJs Restaurants or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 33.33% |
| Values | Daily Returns |
BJs Restaurants vs. BATSLN 475 01 NOV 42
Performance |
| Timeline |
| BJs Restaurants |
| BATSLN 475 01 |
BJs Restaurants and BATSLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and BATSLN
The main advantage of trading using opposite BJs Restaurants and BATSLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, BATSLN 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 BATSLN will offset losses from the drop in BATSLN'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 Transaction History module to view history of all your transactions and understand their impact on performance.
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