Correlation Between BJs Restaurants and Data3

Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Data3 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 Data3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between BJs Restaurants and Data3 Limited, you can compare the effects of market volatilities on BJs Restaurants and Data3 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 Data3. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Data3.

Diversification Opportunities for BJs Restaurants and Data3

0.0

Correlation Coefficient

BJs Restaurants  Data3

Pay attention - limited upside

The 3 months correlation between BJs and Data3 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Data3 Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data3 Limited 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 Data3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data3 Limited has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Data3 go up and down completely randomly.

Pair Corralation between BJs Restaurants and Data3

Given the investment horizon of 90 days BJs Restaurants is expected to generate 11.11 times more return on investment than Data3. However, BJs Restaurants is 11.11 times more volatile than Data3 Limited. It trades about 0.07 of its potential returns per unit of risk. Data3 Limited is currently generating about 0.12 per unit of risk. If you would invest  3,355  in BJs Restaurants on September 7, 2025 and sell it today you would earn a total of  400.00  from holding BJs Restaurants or generate 11.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

BJs Restaurants  vs.  Data3 Limited

BJs Restaurants

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in BJs Restaurants are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, BJs Restaurants demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Data3 Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Data3 Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Data3 is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BJs Restaurants and Data3

The main advantage of trading using opposite BJs Restaurants and Data3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Data3 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 Data3 will offset losses from the drop in Data3's long position.

The idea behind BJs Restaurants and Data3 Limited 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.