Correlation Between Gold Road and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both Gold Road and BJs Wholesale 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 Gold Road and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gold Road Resources and BJs Wholesale Club, you can compare the effects of market volatilities on Gold Road and BJs Wholesale 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 Gold Road with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Road and BJs Wholesale.
Diversification Opportunities for Gold Road and BJs Wholesale
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gold and BJs is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gold Road Resources and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club and Gold Road 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 Gold Road Resources are associated (or correlated) with BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of Gold Road i.e., Gold Road and BJs Wholesale go up and down completely randomly.
Pair Corralation between Gold Road and BJs Wholesale
Assuming the 90 days horizon Gold Road Resources is expected to generate 0.64 times more return on investment than BJs Wholesale. However, Gold Road Resources is 1.56 times less risky than BJs Wholesale. It trades about 0.94 of its potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.12 per unit of risk. If you would invest 121.00 in Gold Road Resources on October 29, 2024 and sell it today you would earn a total of 27.00 from holding Gold Road Resources or generate 22.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gold Road Resources vs. BJs Wholesale Club
Performance |
| Timeline |
| Gold Road Resources |
| BJs Wholesale Club |
Gold Road and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Road and BJs Wholesale
The main advantage of trading using opposite Gold Road and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Road position performs unexpectedly, BJs Wholesale 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 Wholesale will offset losses from the drop in BJs Wholesale's long position.| Gold Road vs. ZIJIN MINH UNSPADR20 | Gold Road vs. Newmont | Gold Road vs. Superior Plus Corp | Gold Road vs. Origin Agritech |
| BJs Wholesale vs. Strategic Education | BJs Wholesale vs. DEVRY EDUCATION GRP | BJs Wholesale vs. EEDUCATION ALBERT AB | BJs Wholesale vs. APPLIED MATERIALS |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |