Correlation Between BJs Restaurants and AGRICULTBK HADR/25
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on BJs Restaurants and AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and AGRICULTBK HADR/25.
Diversification Opportunities for BJs Restaurants and AGRICULTBK HADR/25
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between BJs and AGRICULTBK is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR/25 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 AGRICULTBK HADR/25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR/25 has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and AGRICULTBK HADR/25 go up and down completely randomly.
Pair Corralation between BJs Restaurants and AGRICULTBK HADR/25
Assuming the 90 days trading horizon BJs Restaurants is expected to generate 1.28 times less return on investment than AGRICULTBK HADR/25. In addition to that, BJs Restaurants is 1.46 times more volatile than AGRICULTBK HADR25 YC. It trades about 0.13 of its total potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.23 per unit of volatility. If you would invest 1,270 in AGRICULTBK HADR25 YC on November 27, 2024 and sell it today you would earn a total of 90.00 from holding AGRICULTBK HADR25 YC or generate 7.09% 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. AGRICULTBK HADR25 YC
Performance |
| Timeline |
| BJs Restaurants |
| AGRICULTBK HADR/25 |
BJs Restaurants and AGRICULTBK HADR/25 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and AGRICULTBK HADR/25
The main advantage of trading using opposite BJs Restaurants and AGRICULTBK HADR/25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, AGRICULTBK HADR/25 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 AGRICULTBK HADR/25 will offset losses from the drop in AGRICULTBK HADR/25's long position.| BJs Restaurants vs. Sunny Optical Technology | BJs Restaurants vs. Easy Software AG | BJs Restaurants vs. ASPEN TECHINC DL | BJs Restaurants vs. THORNEY TECHS LTD |
| AGRICULTBK HADR/25 vs. SCANSOURCE | AGRICULTBK HADR/25 vs. Sunstone Hotel Investors | AGRICULTBK HADR/25 vs. INTER CARS SA | AGRICULTBK HADR/25 vs. Summit Hotel Properties |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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