Correlation Between BJs Wholesale and Evolv Technologies
Can any of the company-specific risk be diversified away by investing in both BJs Wholesale and Evolv Technologies 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 Evolv Technologies 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 Evolv Technologies Holdings, you can compare the effects of market volatilities on BJs Wholesale and Evolv Technologies 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 Evolv Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of BJs Wholesale and Evolv Technologies.
Diversification Opportunities for BJs Wholesale and Evolv Technologies
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between BJs and Evolv is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding BJs Wholesale Club and Evolv Technologies Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolv Technologies 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 Evolv Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolv Technologies has no effect on the direction of BJs Wholesale i.e., BJs Wholesale and Evolv Technologies go up and down completely randomly.
Pair Corralation between BJs Wholesale and Evolv Technologies
Allowing for the 90-day total investment horizon BJs Wholesale Club is expected to generate 0.38 times more return on investment than Evolv Technologies. However, BJs Wholesale Club is 2.66 times less risky than Evolv Technologies. It trades about 0.06 of its potential returns per unit of risk. Evolv Technologies Holdings is currently generating about -0.01 per unit of risk. If you would invest 7,162 in BJs Wholesale Club on January 25, 2024 and sell it today you would earn a total of 330.00 from holding BJs Wholesale Club or generate 4.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BJs Wholesale Club vs. Evolv Technologies Holdings
Performance |
| Timeline |
| BJs Wholesale Club |
| Evolv Technologies |
BJs Wholesale and Evolv Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BJs Wholesale and Evolv Technologies
The main advantage of trading using opposite BJs Wholesale and Evolv Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BJs Wholesale position performs unexpectedly, Evolv Technologies 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 Evolv Technologies will offset losses from the drop in Evolv Technologies' long position.| BJs Wholesale vs. Big Lots | BJs Wholesale vs. Aquagold International | BJs Wholesale vs. Thrivent High Yield | BJs Wholesale vs. Morningstar Unconstrained Allocation |
| Evolv Technologies vs. First Responder Technologies | Evolv Technologies vs. Knightscope | Evolv Technologies vs. LogicMark | Evolv Technologies vs. Guardforce AI Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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