Correlation Between BJs Wholesale and JetAI

Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and JetAI 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 JetAI 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 JetAI Inc, you can compare the effects of market volatilities on BJs Wholesale and JetAI 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 JetAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and JetAI.

Diversification Opportunities for BJs Wholesale and JetAI

0.13

Correlation Coefficient

BJs Wholesale  JetAI

Average diversification

The 3 months correlation between BJs and JetAI is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and JetAI Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JetAI Inc 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 JetAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JetAI Inc has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and JetAI go up and down completely randomly.

Pair Corralation between BJs Wholesale and JetAI

Allowing for the 90-day total investment horizon BJs Wholesale Club is expected to under-perform the JetAI. But the stock apears to be less risky and, when comparing its historical volatility, BJs Wholesale Club is 2.03 times less risky than JetAI. The stock trades about -0.13 of its potential returns per unit of risk. The JetAI Inc is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest  355.00  in JetAI Inc on July 8, 2025 and sell it today you would lose (40.00) from holding JetAI Inc or give up 11.27% of portfolio value over 90 days.

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

BJs Wholesale Club  vs.  JetAI Inc

BJs Wholesale Club

Risk-Adjusted Performance

Weakest

Over the last 90 days BJs Wholesale Club has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's forward-looking indicators remain relatively steady which may send shares a bit higher in November 2025. The new chaos may also be a sign of medium-term up-swing for the company stakeholders.

JetAI Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days JetAI Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with BJs Wholesale and JetAI

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

The idea behind BJs Wholesale Club and JetAI Inc 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 Global Correlations module to find global opportunities by holding instruments from different markets.