Correlation Between BJs Restaurants and South Jersey
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and South Jersey 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 South Jersey into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and South Jersey Industries, you can compare the effects of market volatilities on BJs Restaurants and South Jersey 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 South Jersey. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and South Jersey.
Diversification Opportunities for BJs Restaurants and South Jersey
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and South is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and South Jersey Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on South Jersey Industries 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 South Jersey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of South Jersey Industries has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and South Jersey go up and down completely randomly.
Pair Corralation between BJs Restaurants and South Jersey
If you would invest 3,665 in BJs Restaurants on December 5, 2024 and sell it today you would earn a total of 27.00 from holding BJs Restaurants or generate 0.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BJs Restaurants vs. South Jersey Industries
Performance |
Timeline |
BJs Restaurants |
South Jersey Industries |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
BJs Restaurants and South Jersey Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BJs Restaurants and South Jersey
The main advantage of trading using opposite BJs Restaurants and South Jersey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, South Jersey 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 South Jersey will offset losses from the drop in South Jersey's long position.BJs Restaurants vs. Dine Brands Global | BJs Restaurants vs. Brinker International | BJs Restaurants vs. Bloomin Brands | BJs Restaurants vs. The Cheesecake Factory |
South Jersey vs. BioNTech SE | South Jersey vs. Playa Hotels Resorts | South Jersey vs. ServiceNow | South Jersey vs. Playtech plc |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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