Correlation Between VirnetX Holding and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both VirnetX Holding 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 VirnetX Holding and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VirnetX Holding Corp and BJs Restaurants, you can compare the effects of market volatilities on VirnetX Holding 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 VirnetX Holding with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of VirnetX Holding and BJs Restaurants.
Diversification Opportunities for VirnetX Holding and BJs Restaurants
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between VirnetX and BJs is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding VirnetX Holding Corp and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and VirnetX Holding 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 VirnetX Holding Corp 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 VirnetX Holding i.e., VirnetX Holding and BJs Restaurants go up and down completely randomly.
Pair Corralation between VirnetX Holding and BJs Restaurants
Considering the 90-day investment horizon VirnetX Holding Corp is expected to generate 1.76 times more return on investment than BJs Restaurants. However, VirnetX Holding is 1.76 times more volatile than BJs Restaurants. It trades about 0.07 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.04 per unit of risk. If you would invest 412.00 in VirnetX Holding Corp on August 29, 2024 and sell it today you would earn a total of 142.00 from holding VirnetX Holding Corp or generate 34.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VirnetX Holding Corp vs. BJs Restaurants
Performance |
| Timeline |
| VirnetX Holding Corp |
| BJs Restaurants |
VirnetX Holding and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VirnetX Holding and BJs Restaurants
The main advantage of trading using opposite VirnetX Holding and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VirnetX Holding 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.| VirnetX Holding vs. Hub Cyber Security | VirnetX Holding vs. authID Inc | VirnetX Holding vs. Aurora Mobile | VirnetX Holding vs. Taoping |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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