Correlation Between NBCUNIVERSAL and BJs Restaurants
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By analyzing existing cross correlation between NBCUNIVERSAL MEDIA LLC and BJs Restaurants, you can compare the effects of market volatilities on NBCUNIVERSAL and BJs Restaurants 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 NBCUNIVERSAL with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBCUNIVERSAL and BJs Restaurants.
Diversification Opportunities for NBCUNIVERSAL and BJs Restaurants
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NBCUNIVERSAL and BJs is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding NBCUNIVERSAL MEDIA LLC and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and NBCUNIVERSAL 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 NBCUNIVERSAL MEDIA LLC are associated (or correlated) with BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of NBCUNIVERSAL i.e., NBCUNIVERSAL and BJs Restaurants go up and down completely randomly.
Pair Corralation between NBCUNIVERSAL and BJs Restaurants
Assuming the 90 days trading horizon NBCUNIVERSAL is expected to generate 29.48 times less return on investment than BJs Restaurants. But when comparing it to its historical volatility, NBCUNIVERSAL MEDIA LLC is 1.5 times less risky than BJs Restaurants. It trades about 0.0 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,239 in BJs Restaurants on September 25, 2024 and sell it today you would earn a total of 236.00 from holding BJs Restaurants or generate 7.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 49.21% |
Values | Daily Returns |
NBCUNIVERSAL MEDIA LLC vs. BJs Restaurants
Performance |
Timeline |
NBCUNIVERSAL MEDIA LLC |
BJs Restaurants |
NBCUNIVERSAL and BJs Restaurants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with NBCUNIVERSAL and BJs Restaurants
The main advantage of trading using opposite NBCUNIVERSAL and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBCUNIVERSAL position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.NBCUNIVERSAL vs. Life Time Group | NBCUNIVERSAL vs. AerSale Corp | NBCUNIVERSAL vs. Porvair plc | NBCUNIVERSAL vs. Cebu Air ADR |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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