Correlation Between BJs Wholesale and QKL Stores

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

Diversification Opportunities for BJs Wholesale and QKL Stores

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between BJs Wholesale and QKL Stores

If you would invest  0.01  in QKL Stores on August 31, 2025 and sell it today you would earn a total of  0.00  from holding QKL Stores or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy96.92%
ValuesDaily Returns

BJs Wholesale Club  vs.  QKL Stores

 Performance 
       Timeline  
BJs Wholesale Club 

Risk-Adjusted Performance

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Weak
 
Strong
Over the last 90 days BJs Wholesale Club has generated negative risk-adjusted returns adding no value to investors with long positions. Even with latest fragile performance, the Stock's forward-looking indicators remain steady and the new chaos on Wall Street may also be a sign of medium-term gains for the company stakeholders.
QKL Stores 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days QKL Stores has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, QKL Stores is not utilizing all of its potentials. The new stock price uproar, may contribute to short-horizon losses for the private investors.

BJs Wholesale and QKL Stores Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BJs Wholesale and QKL Stores

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

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