Correlation Between BJs Restaurants and 573874AC8

Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and 573874AC8 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 573874AC8 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BJs Restaurants and MRVL 165 15 APR 26, you can compare the effects of market volatilities on BJs Restaurants and 573874AC8 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 573874AC8. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and 573874AC8.

Diversification Opportunities for BJs Restaurants and 573874AC8

-0.08

Correlation Coefficient

BJs Restaurants  573874AC8

Good diversification

The 3 months correlation between BJs and 573874AC8 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and MRVL 165 15 APR 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MRVL 165 15 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 573874AC8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MRVL 165 15 has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and 573874AC8 go up and down completely randomly.

Pair Corralation between BJs Restaurants and 573874AC8

Given the investment horizon of 90 days BJs Restaurants is expected to generate 4.21 times more return on investment than 573874AC8. However, BJs Restaurants is 4.21 times more volatile than MRVL 165 15 APR 26. It trades about 0.0 of its potential returns per unit of risk. MRVL 165 15 APR 26 is currently generating about -0.07 per unit of risk. If you would invest  3,659  in BJs Restaurants on October 10, 2024 and sell it today you would lose (135.00) from holding BJs Restaurants or give up 3.69% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	87.1%
Values	Daily Returns

BJs Restaurants  vs.  MRVL 165 15 APR 26

BJs Restaurants

Risk-Adjusted Performance

4 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BJs Restaurants are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, BJs Restaurants may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MRVL 165 15

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MRVL 165 15 APR 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for MRVL 165 15 APR 26 investors.

Pair Trading with BJs Restaurants and 573874AC8

The main advantage of trading using opposite BJs Restaurants and 573874AC8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, 573874AC8 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 573874AC8 will offset losses from the drop in 573874AC8's long position.

The idea behind BJs Restaurants and MRVL 165 15 APR 26 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.