Correlation Between Boston Omaha and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Boston Omaha and BJs Restaurants 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 Boston Omaha and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Boston Omaha Corp and BJs Restaurants, you can compare the effects of market volatilities on Boston Omaha and BJs Restaurants 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 Boston Omaha with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Boston Omaha and BJs Restaurants.
Diversification Opportunities for Boston Omaha and BJs Restaurants
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Boston and BJs is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Boston Omaha Corp and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and Boston Omaha 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 Boston Omaha Corp are associated (or correlated) with BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of Boston Omaha i.e., Boston Omaha and BJs Restaurants go up and down completely randomly.
Pair Corralation between Boston Omaha and BJs Restaurants
Considering the 90-day investment horizon Boston Omaha Corp is expected to under-perform the BJs Restaurants. But the stock apears to be less risky and, when comparing its historical volatility, Boston Omaha Corp is 1.36 times less risky than BJs Restaurants. The stock trades about -0.05 of its potential returns per unit of risk. The BJs Restaurants is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,458 in BJs Restaurants on November 7, 2024 and sell it today you would earn a total of 227.00 from holding BJs Restaurants or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Boston Omaha Corp vs. BJs Restaurants
Performance |
| Timeline |
| Boston Omaha Corp |
| BJs Restaurants |
Boston Omaha and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Boston Omaha and BJs Restaurants
The main advantage of trading using opposite Boston Omaha and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Boston Omaha position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.| Boston Omaha vs. Integral Ad Science | Boston Omaha vs. Cardlytics | Boston Omaha vs. Cimpress NV | Boston Omaha vs. QuinStreet |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |