Correlation Between BJs Wholesale and Acorn International
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and Acorn International 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 Wholesale and Acorn International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Wholesale Club and Acorn International, you can compare the effects of market volatilities on BJs Wholesale and Acorn International 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 Wholesale with a short position of Acorn International. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and Acorn International.
Diversification Opportunities for BJs Wholesale and Acorn International
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and Acorn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and Acorn International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Acorn International and BJs Wholesale 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 Wholesale Club are associated (or correlated) with Acorn International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Acorn International has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and Acorn International go up and down completely randomly.
Pair Corralation between BJs Wholesale and Acorn International
If you would invest 6,481 in BJs Wholesale Club on December 29, 2023 and sell it today you would earn a total of 1,168 from holding BJs Wholesale Club or generate 18.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
BJs Wholesale Club vs. Acorn International
Performance |
Timeline |
BJs Wholesale Club |
Acorn International |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
BJs Wholesale and Acorn International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BJs Wholesale and Acorn International
The main advantage of trading using opposite BJs Wholesale and Acorn International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, Acorn International 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 Acorn International will offset losses from the drop in Acorn International's long position.BJs Wholesale vs. Grocery Outlet Holding | BJs Wholesale vs. Trxade Group | BJs Wholesale vs. Davis Commodities Limited | BJs Wholesale vs. WEBUY GLOBAL LTD |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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