Correlation Between BJs Wholesale and KLDiscovery
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and KLDiscovery 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 KLDiscovery 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 KLDiscovery, you can compare the effects of market volatilities on BJs Wholesale and KLDiscovery 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 KLDiscovery. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and KLDiscovery.
Diversification Opportunities for BJs Wholesale and KLDiscovery
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BJs and KLDiscovery is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and KLDiscovery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KLDiscovery 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 KLDiscovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KLDiscovery has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and KLDiscovery go up and down completely randomly.
Pair Corralation between BJs Wholesale and KLDiscovery
Allowing for the 90-day total investment horizon BJs Wholesale Club is expected to under-perform the KLDiscovery. But the stock apears to be less risky and, when comparing its historical volatility, BJs Wholesale Club is 9.32 times less risky than KLDiscovery. The stock trades about -0.08 of its potential returns per unit of risk. The KLDiscovery is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.01 in KLDiscovery on August 31, 2025 and sell it today you would earn a total of 0.00 from holding KLDiscovery or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
BJs Wholesale Club vs. KLDiscovery
Performance |
| Timeline |
| BJs Wholesale Club |
| KLDiscovery |
BJs Wholesale and KLDiscovery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and KLDiscovery
The main advantage of trading using opposite BJs Wholesale and KLDiscovery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, KLDiscovery 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 KLDiscovery will offset losses from the drop in KLDiscovery's long position.| BJs Wholesale vs. Mako Mining Corp | BJs Wholesale vs. Astral Foods Limited | BJs Wholesale vs. BBB Foods | BJs Wholesale vs. Barrick Mining |
| KLDiscovery vs. BG Foods | KLDiscovery vs. Active Health Foods | KLDiscovery vs. Bebida Beverage Co | KLDiscovery vs. Tower Semiconductor |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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