Correlation Between Tristar Acquisition and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Tristar Acquisition and BJs Restaurants 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 Tristar Acquisition and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tristar Acquisition Group and BJs Restaurants, you can compare the effects of market volatilities on Tristar Acquisition and BJs Restaurants 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 Tristar Acquisition with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tristar Acquisition and BJs Restaurants.
Diversification Opportunities for Tristar Acquisition and BJs Restaurants
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tristar and BJs is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tristar Acquisition Group and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and Tristar 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 Tristar Acquisition Group are associated (or correlated) with BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of Tristar Acquisition i.e., Tristar Acquisition and BJs Restaurants go up and down completely randomly.
Pair Corralation between Tristar Acquisition and BJs Restaurants
Given the investment horizon of 90 days Tristar Acquisition Group is expected to generate 2.9 times more return on investment than BJs Restaurants. However, Tristar Acquisition is 2.9 times more volatile than BJs Restaurants. It trades about 0.03 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.09 per unit of risk. If you would invest 2.00 in Tristar Acquisition Group on September 16, 2024 and sell it today you would earn a total of 0.00 from holding Tristar Acquisition Group or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Tristar Acquisition Group vs. BJs Restaurants
Performance |
Timeline |
Tristar Acquisition |
BJs Restaurants |
Tristar Acquisition and BJs Restaurants Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tristar Acquisition and BJs Restaurants
The main advantage of trading using opposite Tristar Acquisition and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tristar Acquisition position performs unexpectedly, BJs Restaurants 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 Restaurants will offset losses from the drop in BJs Restaurants' long position.Tristar Acquisition vs. BJs Restaurants | Tristar Acquisition vs. Cadence Design Systems | Tristar Acquisition vs. Rave Restaurant Group | Tristar Acquisition vs. RCI Hospitality Holdings |
BJs Restaurants vs. Dine Brands Global | BJs Restaurants vs. Brinker International | BJs Restaurants vs. Bloomin Brands | BJs Restaurants vs. The Cheesecake Factory |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |