Correlation Between Cumulus Media and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Cumulus Media 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 Cumulus Media and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cumulus Media Class and BJs Restaurants, you can compare the effects of market volatilities on Cumulus Media 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 Cumulus Media with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and BJs Restaurants.
Diversification Opportunities for Cumulus Media and BJs Restaurants
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cumulus and BJs is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and Cumulus Media 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 Cumulus Media Class 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 Cumulus Media i.e., Cumulus Media and BJs Restaurants go up and down completely randomly.
Pair Corralation between Cumulus Media and BJs Restaurants
Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the BJs Restaurants. In addition to that, Cumulus Media is 1.61 times more volatile than BJs Restaurants. It trades about -0.08 of its total potential returns per unit of risk. BJs Restaurants is currently generating about 0.03 per unit of volatility. If you would invest 2,974 in BJs Restaurants on August 30, 2024 and sell it today you would earn a total of 810.00 from holding BJs Restaurants or generate 27.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cumulus Media Class vs. BJs Restaurants
Performance |
| Timeline |
| Cumulus Media Class |
| BJs Restaurants |
Cumulus Media and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cumulus Media and BJs Restaurants
The main advantage of trading using opposite Cumulus Media and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media 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.| Cumulus Media vs. E W Scripps | Cumulus Media vs. Gray Television | Cumulus Media vs. ProSiebenSat1 Media AG | Cumulus Media vs. RTL Group SA |
| BJs Restaurants vs. Jack In The | BJs Restaurants vs. Potbelly Co | BJs Restaurants vs. Rave Restaurant Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stocks Directory Find actively traded stocks across global markets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |