Correlation Between Kesko Oyj and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both Kesko Oyj 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 Kesko Oyj and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kesko Oyj ADR and BJs Wholesale Club, you can compare the effects of market volatilities on Kesko Oyj 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 Kesko Oyj with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kesko Oyj and BJs Wholesale.
Diversification Opportunities for Kesko Oyj and BJs Wholesale
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kesko and BJs is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kesko Oyj ADR 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 Kesko Oyj 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 Kesko Oyj ADR 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 Kesko Oyj i.e., Kesko Oyj and BJs Wholesale go up and down completely randomly.
Pair Corralation between Kesko Oyj and BJs Wholesale
Assuming the 90 days horizon Kesko Oyj ADR is expected to under-perform the BJs Wholesale. But the pink sheet apears to be less risky and, when comparing its historical volatility, Kesko Oyj ADR is 1.08 times less risky than BJs Wholesale. The pink sheet trades about -0.18 of its potential returns per unit of risk. The BJs Wholesale Club is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 7,653 in BJs Wholesale Club on February 7, 2024 and sell it today you would lose (18.00) from holding BJs Wholesale Club or give up 0.24% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Kesko Oyj ADR vs. BJs Wholesale Club
Performance |
Timeline |
Kesko Oyj ADR |
BJs Wholesale Club |
Kesko Oyj and BJs Wholesale Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kesko Oyj and BJs Wholesale
The main advantage of trading using opposite Kesko Oyj and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kesko Oyj 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.Kesko Oyj vs. Natural Grocers by | Kesko Oyj vs. Grocery Outlet Holding | Kesko Oyj vs. Village Super Market | Kesko Oyj vs. Ingles Markets Incorporated |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |