Correlation Between BOS BETTER and BJs Restaurants

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Can any of the company-specific risk be diversified away by investing in both BOS BETTER 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 BOS BETTER and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and BJs Restaurants, you can compare the effects of market volatilities on BOS BETTER 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 BOS BETTER with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and BJs Restaurants.

Diversification Opportunities for BOS BETTER and BJs Restaurants

BOSBJsDiversified AwayBOSBJsDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between BOS and BJs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and BOS BETTER 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 BOS BETTER ONLINE 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 BOS BETTER i.e., BOS BETTER and BJs Restaurants go up and down completely randomly.

Pair Corralation between BOS BETTER and BJs Restaurants

If you would invest  3,500  in BJs Restaurants on November 30, 2024 and sell it today you would earn a total of  60.00  from holding BJs Restaurants or generate 1.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

BOS BETTER ONLINE  vs.  BJs Restaurants

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 2468
JavaScript chart by amCharts 3.21.15BOQ ZCG
       Timeline  
BOS BETTER ONLINE 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BOS BETTER ONLINE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, BOS BETTER is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.42.452.5
BJs Restaurants 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BJs Restaurants has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, BJs Restaurants is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb3333.53434.53535.53636.537

BOS BETTER and BJs Restaurants Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.020.040.060.08
JavaScript chart by amCharts 3.21.15BOQ ZCG
       Returns  

Pair Trading with BOS BETTER and BJs Restaurants

The main advantage of trading using opposite BOS BETTER and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER 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.
The idea behind BOS BETTER ONLINE and BJs Restaurants 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.
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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