Correlation Between BJs Restaurants and Shenandoah Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Shenandoah Telecommunications, you can compare the effects of market volatilities on BJs Restaurants and Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Shenandoah Telecommunicatio.
Diversification Opportunities for BJs Restaurants and Shenandoah Telecommunicatio
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between BJs and Shenandoah is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Shenandoah Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenandoah Telecommunicatio has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Shenandoah Telecommunicatio go up and down completely randomly.
Pair Corralation between BJs Restaurants and Shenandoah Telecommunicatio
Assuming the 90 days trading horizon BJs Restaurants is expected to generate 0.91 times more return on investment than Shenandoah Telecommunicatio. However, BJs Restaurants is 1.1 times less risky than Shenandoah Telecommunicatio. It trades about -0.07 of its potential returns per unit of risk. Shenandoah Telecommunications is currently generating about -0.51 per unit of risk. If you would invest 3,560 in BJs Restaurants on November 7, 2024 and sell it today you would lose (80.00) from holding BJs Restaurants or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Restaurants vs. Shenandoah Telecommunications
Performance |
| Timeline |
| BJs Restaurants |
| Shenandoah Telecommunicatio |
BJs Restaurants and Shenandoah Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Shenandoah Telecommunicatio
The main advantage of trading using opposite BJs Restaurants and Shenandoah Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Shenandoah Telecommunicatio 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 Shenandoah Telecommunicatio will offset losses from the drop in Shenandoah Telecommunicatio's long position.| BJs Restaurants vs. SIVERS SEMICONDUCTORS AB | BJs Restaurants vs. NorAm Drilling AS | BJs Restaurants vs. Volkswagen AG | BJs Restaurants vs. Darden Restaurants |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |