Correlation Between BJs Restaurants and Balyo SA
Can any of the company-specific risk be diversified away by investing in both BJs Restaurants and Balyo SA 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 Balyo SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BJs Restaurants and Balyo SA, you can compare the effects of market volatilities on BJs Restaurants and Balyo SA 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 Balyo SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Restaurants and Balyo SA.
Diversification Opportunities for BJs Restaurants and Balyo SA
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between BJs and Balyo is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding BJs Restaurants and Balyo SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Balyo SA 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 Balyo SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Balyo SA has no effect on the direction of BJs Restaurants i.e., BJs Restaurants and Balyo SA go up and down completely randomly.
Pair Corralation between BJs Restaurants and Balyo SA
Given the investment horizon of 90 days BJs Restaurants is expected to generate 3.46 times more return on investment than Balyo SA. However, BJs Restaurants is 3.46 times more volatile than Balyo SA. It trades about 0.07 of its potential returns per unit of risk. Balyo SA is currently generating about 0.12 per unit of risk. If you would invest 3,281 in BJs Restaurants on September 9, 2025 and sell it today you would earn a total of 440.00 from holding BJs Restaurants or generate 13.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
BJs Restaurants vs. Balyo SA
Performance |
| Timeline |
| BJs Restaurants |
| Balyo SA |
BJs Restaurants and Balyo SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Restaurants and Balyo SA
The main advantage of trading using opposite BJs Restaurants and Balyo SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Restaurants position performs unexpectedly, Balyo SA 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 Balyo SA will offset losses from the drop in Balyo SA's long position.| BJs Restaurants vs. Sweetgreen | BJs Restaurants vs. Cracker Barrel Old | BJs Restaurants vs. Liquidity Services | BJs Restaurants vs. Bloomin Brands |
| Balyo SA vs. Amaero International | Balyo SA vs. Scott Technology Limited | Balyo SA vs. Thruvision Group plc | Balyo SA vs. ADF Group |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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