Correlation Between BJs Restaurants and Walgreens Boots
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Walgreens Boots 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 Walgreens Boots into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Walgreens Boots Alliance, you can compare the effects of market volatilities on BJs Restaurants and Walgreens Boots 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 Walgreens Boots. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Walgreens Boots.
Diversification Opportunities for BJs Restaurants and Walgreens Boots
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and Walgreens is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Walgreens Boots Alliance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walgreens Boots Alliance 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 Walgreens Boots. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walgreens Boots Alliance has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Walgreens Boots go up and down completely randomly.
Pair Corralation between BJs Restaurants and Walgreens Boots
If you would invest 3,060 in BJs Restaurants on October 25, 2024 and sell it today you would earn a total of 300.00 from holding BJs Restaurants or generate 9.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
BJs Restaurants vs. Walgreens Boots Alliance
Performance |
| Timeline |
| BJs Restaurants |
| Walgreens Boots Alliance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
BJs Restaurants and Walgreens Boots Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Walgreens Boots
The main advantage of trading using opposite BJs Restaurants and Walgreens Boots positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Walgreens Boots 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 Walgreens Boots will offset losses from the drop in Walgreens Boots' long position.| BJs Restaurants vs. SBI Insurance Group | BJs Restaurants vs. TOMBADOR IRON LTD | BJs Restaurants vs. Vienna Insurance Group | BJs Restaurants vs. Xiwang Special Steel |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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