Correlation Between AGRICULTBK HADR/25 and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AGRICULTBK HADR25 YC and BJs Restaurants, you can compare the effects of market volatilities on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of AGRICULTBK HADR/25 and BJs Restaurants.
Diversification Opportunities for AGRICULTBK HADR/25 and BJs Restaurants
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AGRICULTBK and BJs is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding AGRICULTBK HADR25 YC and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and AGRICULTBK HADR/25 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 AGRICULTBK HADR25 YC 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 AGRICULTBK HADR/25 i.e., AGRICULTBK HADR/25 and BJs Restaurants go up and down completely randomly.
Pair Corralation between AGRICULTBK HADR/25 and BJs Restaurants
Assuming the 90 days trading horizon AGRICULTBK HADR/25 is expected to generate 1.93 times less return on investment than BJs Restaurants. But when comparing it to its historical volatility, AGRICULTBK HADR25 YC is 1.11 times less risky than BJs Restaurants. It trades about 0.1 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,760 in BJs Restaurants on September 2, 2024 and sell it today you would earn a total of 820.00 from holding BJs Restaurants or generate 29.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AGRICULTBK HADR25 YC vs. BJs Restaurants
Performance |
| Timeline |
| AGRICULTBK HADR/25 |
| BJs Restaurants |
AGRICULTBK HADR/25 and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AGRICULTBK HADR/25 and BJs Restaurants
The main advantage of trading using opposite AGRICULTBK HADR/25 and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AGRICULTBK HADR/25 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.| AGRICULTBK HADR/25 vs. CHINA BANK ADR20 | AGRICULTBK HADR/25 vs. COMMONWBK AUSTRSPADRS | AGRICULTBK HADR/25 vs. The Toronto Dominion Bank | AGRICULTBK HADR/25 vs. Bank of Montreal |
| BJs Restaurants vs. ELECTRONIC ARTS | BJs Restaurants vs. REVO INSURANCE SPA | BJs Restaurants vs. Japan Post Insurance | BJs Restaurants vs. Safety Insurance 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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