Correlation Between BJs Restaurants and GUARDANT HEALTH
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and GUARDANT HEALTH 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 GUARDANT HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and GUARDANT HEALTH CL, you can compare the effects of market volatilities on BJs Restaurants and GUARDANT HEALTH 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 GUARDANT HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and GUARDANT HEALTH.
Diversification Opportunities for BJs Restaurants and GUARDANT HEALTH
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BJs and GUARDANT is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and GUARDANT HEALTH CL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUARDANT HEALTH CL 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 GUARDANT HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUARDANT HEALTH CL has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and GUARDANT HEALTH go up and down completely randomly.
Pair Corralation between BJs Restaurants and GUARDANT HEALTH
Assuming the 90 days trading horizon BJs Restaurants is expected to generate 0.63 times more return on investment than GUARDANT HEALTH. However, BJs Restaurants is 1.58 times less risky than GUARDANT HEALTH. It trades about 0.03 of its potential returns per unit of risk. GUARDANT HEALTH CL is currently generating about 0.01 per unit of risk. If you would invest 2,780 in BJs Restaurants on September 3, 2024 and sell it today you would earn a total of 800.00 from holding BJs Restaurants or generate 28.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. GUARDANT HEALTH CL
Performance |
| Timeline |
| BJs Restaurants |
| GUARDANT HEALTH CL |
BJs Restaurants and GUARDANT HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and GUARDANT HEALTH
The main advantage of trading using opposite BJs Restaurants and GUARDANT HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, GUARDANT HEALTH 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 GUARDANT HEALTH will offset losses from the drop in GUARDANT HEALTH's long position.| BJs Restaurants vs. Apollo Investment Corp | BJs Restaurants vs. REINET INVESTMENTS SCA | BJs Restaurants vs. ECHO INVESTMENT ZY | BJs Restaurants vs. MGIC INVESTMENT |
| GUARDANT HEALTH vs. Thermo Fisher Scientific | GUARDANT HEALTH vs. Danaher | GUARDANT HEALTH vs. Danaher | GUARDANT HEALTH vs. SIEMENS HEALTH ADR050 |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |