Correlation Between BJs Restaurants and ZEEKR Intelligent

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

By analyzing existing cross correlation between BJs Restaurants and ZEEKR Intelligent Technology, you can compare the effects of market volatilities on BJs Restaurants and ZEEKR Intelligent 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 ZEEKR Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and ZEEKR Intelligent.

Diversification Opportunities for BJs Restaurants and ZEEKR Intelligent

-0.38

Correlation Coefficient

BJs Restaurants  ZEEKR Intelligent

Very good diversification

The 3 months correlation between BJs and ZEEKR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and ZEEKR Intelligent Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZEEKR Intelligent 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 ZEEKR Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZEEKR Intelligent has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and ZEEKR Intelligent go up and down completely randomly.

Pair Corralation between BJs Restaurants and ZEEKR Intelligent

Given the investment horizon of 90 days BJs Restaurants is expected to generate 5.58 times less return on investment than ZEEKR Intelligent. But when comparing it to its historical volatility, BJs Restaurants is 1.7 times less risky than ZEEKR Intelligent. It trades about 0.01 of its potential returns per unit of risk. ZEEKR Intelligent Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,503  in ZEEKR Intelligent Technology on December 4, 2024 and sell it today you would earn a total of  5.00  from holding ZEEKR Intelligent Technology or generate 0.2% 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.  ZEEKR Intelligent Technology

BJs Restaurants

Risk-Adjusted Performance

Insignificant

Over the last 90 days BJs Restaurants has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, BJs Restaurants is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

ZEEKR Intelligent

Risk-Adjusted Performance

Very Weak

Over the last 90 days ZEEKR Intelligent Technology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent forward-looking signals, ZEEKR Intelligent is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with BJs Restaurants and ZEEKR Intelligent

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

The idea behind BJs Restaurants and ZEEKR Intelligent Technology 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.