Correlation Between Kulicke and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Kulicke 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 Kulicke and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kulicke and Soffa and BJs Restaurants, you can compare the effects of market volatilities on Kulicke 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 Kulicke with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kulicke and BJs Restaurants.
Diversification Opportunities for Kulicke and BJs Restaurants
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kulicke and BJs is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kulicke and Soffa and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and Kulicke 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 Kulicke and Soffa 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 Kulicke i.e., Kulicke and BJs Restaurants go up and down completely randomly.
Pair Corralation between Kulicke and BJs Restaurants
Given the investment horizon of 90 days Kulicke is expected to generate 1.53 times less return on investment than BJs Restaurants. But when comparing it to its historical volatility, Kulicke and Soffa is 1.11 times less risky than BJs Restaurants. It trades about 0.03 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,492 in BJs Restaurants on September 3, 2024 and sell it today you would earn a total of 352.00 from holding BJs Restaurants or generate 10.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kulicke and Soffa vs. BJs Restaurants
Performance |
| Timeline |
| Kulicke and Soffa |
| BJs Restaurants |
Kulicke and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kulicke and BJs Restaurants
The main advantage of trading using opposite Kulicke and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kulicke 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.| Kulicke vs. Power Integrations | Kulicke vs. Diodes Incorporated | Kulicke vs. MACOM Technology Solutions | Kulicke vs. Cirrus Logic |
| 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |