Correlation Between Acorn International and BJs Wholesale
Can any of the company-specific risk be diversified away by investing in both Acorn International 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 Acorn International and BJs Wholesale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Acorn International and BJs Wholesale Club, you can compare the effects of market volatilities on Acorn International 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 Acorn International with a short position of BJs Wholesale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Acorn International and BJs Wholesale.
Diversification Opportunities for Acorn International and BJs Wholesale
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Acorn and BJs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Acorn International 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 Acorn International 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 Acorn International 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 Acorn International i.e., Acorn International and BJs Wholesale go up and down completely randomly.
Pair Corralation between Acorn International and BJs Wholesale
If you would invest 6,456 in BJs Wholesale Club on January 20, 2024 and sell it today you would earn a total of 918.00 from holding BJs Wholesale Club or generate 14.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Acorn International vs. BJs Wholesale Club
Performance |
Timeline |
Acorn International |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
BJs Wholesale Club |
Acorn International and BJs Wholesale Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Acorn International and BJs Wholesale
The main advantage of trading using opposite Acorn International and BJs Wholesale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Acorn International 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.Acorn International vs. Definitive Healthcare Corp | Acorn International vs. Kaltura | Acorn International vs. Sapiens International | Acorn International vs. Genfit |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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