Correlation Between ATON GREEN and BJs Restaurants

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

By analyzing existing cross correlation between ATON GREEN STORAGE and BJs Restaurants, you can compare the effects of market volatilities on ATON GREEN 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 ATON GREEN with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATON GREEN and BJs Restaurants.

Diversification Opportunities for ATON GREEN and BJs Restaurants

0.76

Correlation Coefficient

ATON GREEN  BJs Restaurants

Poor diversification

The 3 months correlation between ATON and BJs is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ATON GREEN STORAGE and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and ATON GREEN 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 ATON GREEN STORAGE 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 ATON GREEN i.e., ATON GREEN and BJs Restaurants go up and down completely randomly.

Pair Corralation between ATON GREEN and BJs Restaurants

Assuming the 90 days horizon ATON GREEN STORAGE is expected to generate 1.82 times more return on investment than BJs Restaurants. However, ATON GREEN is 1.82 times more volatile than BJs Restaurants. It trades about 0.11 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.12 per unit of risk. If you would invest  157.00  in ATON GREEN STORAGE on April 22, 2025 and sell it today you would earn a total of  47.00  from holding ATON GREEN STORAGE or generate 29.94% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

ATON GREEN STORAGE  vs.  BJs Restaurants

ATON GREEN STORAGE

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in ATON GREEN STORAGE are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ATON GREEN reported solid returns over the last few months and may actually be approaching a breakup point.

BJs Restaurants

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BJs Restaurants are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, BJs Restaurants unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with ATON GREEN and BJs Restaurants

The main advantage of trading using opposite ATON GREEN and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATON GREEN 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.

The idea behind ATON GREEN STORAGE and BJs Restaurants 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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.