Correlation Between Caseys General and BJs Wholesale

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

By analyzing existing cross correlation between Caseys General Stores and BJs Wholesale Club, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and BJs Wholesale.

Diversification Opportunities for Caseys General and BJs Wholesale

-0.63

Correlation Coefficient

Caseys General  BJs Wholesale

Excellent diversification

The 3 months correlation between Caseys and BJs is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores 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 Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and BJs Wholesale go up and down completely randomly.

Pair Corralation between Caseys General and BJs Wholesale

Assuming the 90 days trading horizon Caseys General Stores is expected to generate 1.35 times more return on investment than BJs Wholesale. However, Caseys General is 1.35 times more volatile than BJs Wholesale Club. It trades about 0.09 of its potential returns per unit of risk. BJs Wholesale Club is currently generating about -0.09 per unit of risk. If you would invest  38,558  in Caseys General Stores on April 22, 2025 and sell it today you would earn a total of  4,842  from holding Caseys General Stores or generate 12.56% return on investment over 90 days.

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

Caseys General Stores  vs.  BJs Wholesale Club

Caseys General Stores

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Caseys General Stores are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Caseys General unveiled solid returns over the last few months and may actually be approaching a breakup point.

BJs Wholesale Club

Risk-Adjusted Performance

Very Weak

Over the last 90 days BJs Wholesale Club has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Caseys General and BJs Wholesale

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

The idea behind Caseys General Stores and BJs Wholesale Club 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.