Correlation Between BJs Restaurants and FRACTAL GAMING
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and FRACTAL GAMING 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 FRACTAL GAMING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and FRACTAL GAMING GROUP, you can compare the effects of market volatilities on BJs Restaurants and FRACTAL GAMING 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 FRACTAL GAMING. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and FRACTAL GAMING.
Diversification Opportunities for BJs Restaurants and FRACTAL GAMING
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and FRACTAL is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and FRACTAL GAMING GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FRACTAL GAMING GROUP 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 FRACTAL GAMING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FRACTAL GAMING GROUP has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and FRACTAL GAMING go up and down completely randomly.
Pair Corralation between BJs Restaurants and FRACTAL GAMING
Assuming the 90 days trading horizon BJs Restaurants is expected to generate 1.15 times more return on investment than FRACTAL GAMING. However, BJs Restaurants is 1.15 times more volatile than FRACTAL GAMING GROUP. It trades about 0.03 of its potential returns per unit of risk. FRACTAL GAMING GROUP is currently generating about -0.08 per unit of risk. If you would invest 3,280 in BJs Restaurants on September 5, 2024 and sell it today you would earn a total of 180.00 from holding BJs Restaurants or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
BJs Restaurants vs. FRACTAL GAMING GROUP
Performance |
| Timeline |
| BJs Restaurants |
| FRACTAL GAMING GROUP |
BJs Restaurants and FRACTAL GAMING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and FRACTAL GAMING
The main advantage of trading using opposite BJs Restaurants and FRACTAL GAMING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, FRACTAL GAMING 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 FRACTAL GAMING will offset losses from the drop in FRACTAL GAMING's long position.| BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc | BJs Restaurants vs. Apple Inc |
| FRACTAL GAMING vs. HP Inc | FRACTAL GAMING vs. Dell Technologies | FRACTAL GAMING vs. Western Digital | FRACTAL GAMING vs. SEIKO EPSON PADR |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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