Correlation Between BJs Restaurants and EPlay Digital
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and EPlay Digital 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 BJs Restaurants and EPlay Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and ePlay Digital, you can compare the effects of market volatilities on BJs Restaurants and EPlay Digital 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 BJs Restaurants with a short position of EPlay Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and EPlay Digital.
Diversification Opportunities for BJs Restaurants and EPlay Digital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and EPlay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and ePlay Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlay Digital and BJs Restaurants 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 BJs Restaurants are associated (or correlated) with EPlay Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlay Digital has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and EPlay Digital go up and down completely randomly.
Pair Corralation between BJs Restaurants and EPlay Digital
If you would invest 3,560 in BJs Restaurants on November 6, 2024 and sell it today you would earn a total of 0.00 from holding BJs Restaurants or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
BJs Restaurants vs. ePlay Digital
Performance |
| Timeline |
| BJs Restaurants |
| ePlay Digital |
BJs Restaurants and EPlay Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and EPlay Digital
The main advantage of trading using opposite BJs Restaurants and EPlay Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, EPlay Digital 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 EPlay Digital will offset losses from the drop in EPlay Digital's long position.| BJs Restaurants vs. SLR Investment Corp | BJs Restaurants vs. CDL INVESTMENT | BJs Restaurants vs. DEVRY EDUCATION GRP | BJs Restaurants vs. HK Electric Investments |
| EPlay Digital vs. Electronic Arts | EPlay Digital vs. Samsung Electronics Co | EPlay Digital vs. Richardson Electronics | EPlay Digital vs. ARROW ELECTRONICS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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