Correlation Between Tianjin Capital and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both Tianjin Capital 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 Tianjin Capital and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tianjin Capital Environmental and BJs Wholesale Club, you can compare the effects of market volatilities on Tianjin Capital 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 Tianjin Capital with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Capital and BJs Wholesale.
Diversification Opportunities for Tianjin Capital and BJs Wholesale
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tianjin and BJs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Capital Environmental 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 Tianjin Capital 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 Tianjin Capital Environmental 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 Tianjin Capital i.e., Tianjin Capital and BJs Wholesale go up and down completely randomly.
Pair Corralation between Tianjin Capital and BJs Wholesale
Assuming the 90 days horizon Tianjin Capital is expected to generate 1.79 times less return on investment than BJs Wholesale. In addition to that, Tianjin Capital is 1.6 times more volatile than BJs Wholesale Club. It trades about 0.06 of its total potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.16 per unit of volatility. If you would invest 7,200 in BJs Wholesale Club on November 28, 2024 and sell it today you would earn a total of 2,600 from holding BJs Wholesale Club or generate 36.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Capital Environmental vs. BJs Wholesale Club
Performance |
| Timeline |
| Tianjin Capital Envi |
| BJs Wholesale Club |
Tianjin Capital and BJs Wholesale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Capital and BJs Wholesale
The main advantage of trading using opposite Tianjin Capital and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Capital 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.| Tianjin Capital vs. CanSino Biologics | Tianjin Capital vs. Lendlease Group | Tianjin Capital vs. ScanSource | Tianjin Capital vs. Sixt Leasing SE |
| BJs Wholesale vs. ASPEN TECHINC DL | BJs Wholesale vs. FARO TECHNOLOGIES | BJs Wholesale vs. Uber Technologies | BJs Wholesale vs. GAZTRTECHNIUADR15EO01 |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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