Correlation Between BJs Restaurants and Materialise

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

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

Diversification Opportunities for BJs Restaurants and Materialise

0.37

Correlation Coefficient

BJs Restaurants  Materialise

Weak diversification

The 3 months correlation between BJs and Materialise is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Materialise NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Materialise NV and BJs Restaurants 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 Restaurants are associated (or correlated) with Materialise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Materialise NV has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Materialise go up and down completely randomly.

Pair Corralation between BJs Restaurants and Materialise

Assuming the 90 days trading horizon BJs Restaurants is expected to generate 1.43 times less return on investment than Materialise. In addition to that, BJs Restaurants is 1.01 times more volatile than Materialise NV. It trades about 0.12 of its total potential returns per unit of risk. Materialise NV is currently generating about 0.17 per unit of volatility. If you would invest  404.00  in Materialise NV on April 24, 2025 and sell it today you would earn a total of  116.00  from holding Materialise NV or generate 28.71% return on investment over 90 days.

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

BJs Restaurants  vs.  Materialise NV

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 uncertain basic indicators, BJs Restaurants unveiled solid returns over the last few months and may actually be approaching a breakup point.

Materialise NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Materialise NV are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Materialise unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BJs Restaurants and Materialise

The main advantage of trading using opposite BJs Restaurants and Materialise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Materialise 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 Materialise will offset losses from the drop in Materialise's long position.

The idea behind BJs Restaurants and Materialise NV 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.