Correlation Between SCANDMEDICAL SOLDK-040 and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SCANDMEDICAL SOLDK 040 and BJs Restaurants, you can compare the effects of market volatilities on SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK-040 with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of SCANDMEDICAL SOLDK-040 and BJs Restaurants.
Diversification Opportunities for SCANDMEDICAL SOLDK-040 and BJs Restaurants
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between SCANDMEDICAL and BJs is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding SCANDMEDICAL SOLDK 040 and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and SCANDMEDICAL SOLDK-040 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 SCANDMEDICAL SOLDK 040 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 SCANDMEDICAL SOLDK-040 i.e., SCANDMEDICAL SOLDK-040 and BJs Restaurants go up and down completely randomly.
Pair Corralation between SCANDMEDICAL SOLDK-040 and BJs Restaurants
Assuming the 90 days horizon SCANDMEDICAL SOLDK-040 is expected to generate 1.07 times less return on investment than BJs Restaurants. In addition to that, SCANDMEDICAL SOLDK-040 is 1.05 times more volatile than BJs Restaurants. It trades about 0.1 of its total potential returns per unit of risk. BJs Restaurants is currently generating about 0.11 per unit of volatility. If you would invest 2,940 in BJs Restaurants on April 23, 2025 and sell it today you would earn a total of 500.00 from holding BJs Restaurants or generate 17.01% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
SCANDMEDICAL SOLDK 040 vs. BJs Restaurants
Performance |
Timeline |
SCANDMEDICAL SOLDK 040 |
BJs Restaurants |
SCANDMEDICAL SOLDK-040 and BJs Restaurants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with SCANDMEDICAL SOLDK-040 and BJs Restaurants
The main advantage of trading using opposite SCANDMEDICAL SOLDK-040 and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCANDMEDICAL SOLDK-040 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.SCANDMEDICAL SOLDK-040 vs. Transport International Holdings | SCANDMEDICAL SOLDK-040 vs. GEELY AUTOMOBILE | SCANDMEDICAL SOLDK-040 vs. BII Railway Transportation | SCANDMEDICAL SOLDK-040 vs. Kaufman Broad SA |
BJs Restaurants vs. ARDAGH METAL PACDL 0001 | BJs Restaurants vs. Federal Agricultural Mortgage | BJs Restaurants vs. ALEFARM BREWING DK 05 | BJs Restaurants vs. AGRICULTBK HADR25 YC |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |