Correlation Between Pet Acquisition and T.J. Maxx

Can any of the company-specific risk be diversified away by investing in both Pet Acquisition and T.J. Maxx 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 Pet Acquisition and T.J. Maxx into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pet Acquisition LLC and The TJX Companies, you can compare the effects of market volatilities on Pet Acquisition and T.J. Maxx 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 Pet Acquisition with a short position of T.J. Maxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pet Acquisition and T.J. Maxx.

Diversification Opportunities for Pet Acquisition and T.J. Maxx

0.49

Correlation Coefficient

Pet Acquisition  T.J. Maxx

Very weak diversification

The 3 months correlation between Pet and T.J. is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pet Acquisition LLC and The TJX Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TJX Companies and Pet Acquisition 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 Pet Acquisition LLC are associated (or correlated) with T.J. Maxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TJX Companies has no effect on the direction of Pet Acquisition i.e., Pet Acquisition and T.J. Maxx go up and down completely randomly.

Pair Corralation between Pet Acquisition and T.J. Maxx

Given the investment horizon of 90 days Pet Acquisition LLC is expected to generate 5.8 times more return on investment than T.J. Maxx. However, Pet Acquisition is 5.8 times more volatile than The TJX Companies. It trades about 0.02 of its potential returns per unit of risk. The TJX Companies is currently generating about 0.02 per unit of risk. If you would invest  317.00  in Pet Acquisition LLC on May 8, 2025 and sell it today you would lose (18.00) from holding Pet Acquisition LLC or give up 5.68% of portfolio value over 90 days.

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

Pet Acquisition LLC  vs.  The TJX Companies

Pet Acquisition LLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pet Acquisition LLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Pet Acquisition may actually be approaching a critical reversion point that can send shares even higher in September 2025.

TJX Companies

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in The TJX Companies are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong forward-looking indicators, T.J. Maxx is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Pet Acquisition and T.J. Maxx

The main advantage of trading using opposite Pet Acquisition and T.J. Maxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pet Acquisition position performs unexpectedly, T.J. Maxx 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 T.J. Maxx will offset losses from the drop in T.J. Maxx's long position.

The idea behind Pet Acquisition LLC and The TJX Companies 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.