Correlation Between LuxExperience and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both LuxExperience 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 LuxExperience and BJs Restaurants into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LuxExperience BV and BJs Restaurants, you can compare the effects of market volatilities on LuxExperience 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 LuxExperience with a short position of BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of LuxExperience and BJs Restaurants.
Diversification Opportunities for LuxExperience and BJs Restaurants
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between LuxExperience and BJs is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding LuxExperience BV and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants and LuxExperience 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 LuxExperience BV 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 LuxExperience i.e., LuxExperience and BJs Restaurants go up and down completely randomly.
Pair Corralation between LuxExperience and BJs Restaurants
Given the investment horizon of 90 days LuxExperience BV is expected to generate 1.76 times more return on investment than BJs Restaurants. However, LuxExperience is 1.76 times more volatile than BJs Restaurants. It trades about 0.07 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.03 per unit of risk. If you would invest 299.00 in LuxExperience BV on September 11, 2025 and sell it today you would earn a total of 678.99 from holding LuxExperience BV or generate 227.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
LuxExperience BV vs. BJs Restaurants
Performance |
| Timeline |
| LuxExperience BV |
| BJs Restaurants |
LuxExperience and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LuxExperience and BJs Restaurants
The main advantage of trading using opposite LuxExperience and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LuxExperience 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.| LuxExperience vs. SES AI Corp | LuxExperience vs. Hovnanian Enterprises | LuxExperience vs. ECARX Holdings Class | LuxExperience vs. Sabre Corpo |
| BJs Restaurants vs. Sweetgreen | BJs Restaurants vs. Cracker Barrel Old | BJs Restaurants vs. Liquidity Services | BJs Restaurants vs. Bloomin Brands |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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