Correlation Between BJs Restaurants and Anritsu
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Anritsu 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 Anritsu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Anritsu, you can compare the effects of market volatilities on BJs Restaurants and Anritsu 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 Anritsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Anritsu.
Diversification Opportunities for BJs Restaurants and Anritsu
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between BJs and Anritsu is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Anritsu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anritsu 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 Anritsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anritsu has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Anritsu go up and down completely randomly.
Pair Corralation between BJs Restaurants and Anritsu
Assuming the 90 days trading horizon BJs Restaurants is expected to generate 1.09 times more return on investment than Anritsu. However, BJs Restaurants is 1.09 times more volatile than Anritsu. It trades about 0.03 of its potential returns per unit of risk. Anritsu is currently generating about 0.01 per unit of risk. If you would invest 2,780 in BJs Restaurants on November 30, 2024 and sell it today you would earn a total of 780.00 from holding BJs Restaurants or generate 28.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. Anritsu
Performance |
| Timeline |
| BJs Restaurants |
| Anritsu |
BJs Restaurants and Anritsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Anritsu
The main advantage of trading using opposite BJs Restaurants and Anritsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Anritsu 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 Anritsu will offset losses from the drop in Anritsu's long position.| BJs Restaurants vs. ELMOS SEMICONDUCTOR | BJs Restaurants vs. Motorcar Parts of | BJs Restaurants vs. INTER CARS SA | BJs Restaurants vs. Cars Inc |
| Anritsu vs. Amphenol | Anritsu vs. Hon Hai Precision | Anritsu vs. Samsung SDI Co | Anritsu vs. Murata Manufacturing Co |
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 CEOs Directory module to screen CEOs from public companies around the world.
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