Correlation Between BJs Wholesale and PROSIEBENSAT1 MEDIADR4/
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and PROSIEBENSAT1 MEDIADR4/ 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 Wholesale and PROSIEBENSAT1 MEDIADR4/ into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Wholesale Club and PROSIEBENSAT1 MEDIADR4, you can compare the effects of market volatilities on BJs Wholesale and PROSIEBENSAT1 MEDIADR4/ 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 Wholesale with a short position of PROSIEBENSAT1 MEDIADR4/. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and PROSIEBENSAT1 MEDIADR4/.
Diversification Opportunities for BJs Wholesale and PROSIEBENSAT1 MEDIADR4/
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and PROSIEBENSAT1 is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and PROSIEBENSAT1 MEDIADR4 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PROSIEBENSAT1 MEDIADR4/ and BJs Wholesale 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 Wholesale Club are associated (or correlated) with PROSIEBENSAT1 MEDIADR4/. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PROSIEBENSAT1 MEDIADR4/ has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and PROSIEBENSAT1 MEDIADR4/ go up and down completely randomly.
Pair Corralation between BJs Wholesale and PROSIEBENSAT1 MEDIADR4/
Assuming the 90 days horizon BJs Wholesale Club is expected to under-perform the PROSIEBENSAT1 MEDIADR4/. In addition to that, BJs Wholesale is 1.02 times more volatile than PROSIEBENSAT1 MEDIADR4. It trades about -0.09 of its total potential returns per unit of risk. PROSIEBENSAT1 MEDIADR4 is currently generating about 0.16 per unit of volatility. If you would invest 148.00 in PROSIEBENSAT1 MEDIADR4 on April 23, 2025 and sell it today you would earn a total of 28.00 from holding PROSIEBENSAT1 MEDIADR4 or generate 18.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BJs Wholesale Club vs. PROSIEBENSAT1 MEDIADR4
Performance |
Timeline |
BJs Wholesale Club |
PROSIEBENSAT1 MEDIADR4/ |
BJs Wholesale and PROSIEBENSAT1 MEDIADR4/ Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BJs Wholesale and PROSIEBENSAT1 MEDIADR4/
The main advantage of trading using opposite BJs Wholesale and PROSIEBENSAT1 MEDIADR4/ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, PROSIEBENSAT1 MEDIADR4/ 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 PROSIEBENSAT1 MEDIADR4/ will offset losses from the drop in PROSIEBENSAT1 MEDIADR4/'s long position.BJs Wholesale vs. Wenzhou Kangning Hospital | BJs Wholesale vs. Evolent Health | BJs Wholesale vs. Ming Le Sports | BJs Wholesale vs. Geely Automobile Holdings |
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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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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