Correlation Between WEBUY GLOBAL and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both WEBUY GLOBAL and BJs Wholesale 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 WEBUY GLOBAL and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WEBUY GLOBAL LTD and BJs Wholesale Club, you can compare the effects of market volatilities on WEBUY GLOBAL and BJs Wholesale 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 WEBUY GLOBAL with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of WEBUY GLOBAL and BJs Wholesale.
Diversification Opportunities for WEBUY GLOBAL and BJs Wholesale
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WEBUY and BJs is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding WEBUY GLOBAL LTD and BJs Wholesale Club in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Wholesale Club and WEBUY GLOBAL 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 WEBUY GLOBAL LTD are associated (or correlated) with BJs Wholesale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Wholesale Club has no effect on the direction of WEBUY GLOBAL i.e., WEBUY GLOBAL and BJs Wholesale go up and down completely randomly.
Pair Corralation between WEBUY GLOBAL and BJs Wholesale
Given the investment horizon of 90 days WEBUY GLOBAL LTD is expected to under-perform the BJs Wholesale. In addition to that, WEBUY GLOBAL is 7.98 times more volatile than BJs Wholesale Club. It trades about -0.04 of its total potential returns per unit of risk. BJs Wholesale Club is currently generating about 0.05 per unit of volatility. If you would invest 7,359 in BJs Wholesale Club on December 2, 2024 and sell it today you would earn a total of 2,767 from holding BJs Wholesale Club or generate 37.6% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 69.09% |
Values | Daily Returns |
WEBUY GLOBAL LTD vs. BJs Wholesale Club
Performance |
Timeline |
WEBUY GLOBAL LTD |
BJs Wholesale Club |
WEBUY GLOBAL and BJs Wholesale Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with WEBUY GLOBAL and BJs Wholesale
The main advantage of trading using opposite WEBUY GLOBAL and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WEBUY GLOBAL position performs unexpectedly, BJs Wholesale 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 Wholesale will offset losses from the drop in BJs Wholesale's long position.WEBUY GLOBAL vs. Cimpress NV | WEBUY GLOBAL vs. MYT Netherlands Parent | WEBUY GLOBAL vs. Simon Property Group | WEBUY GLOBAL vs. Sea |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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