Correlation Between ZhongAn Online and Burlington Stores
Can any of the company-specific risk be diversified away by investing in both ZhongAn Online and Burlington 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 ZhongAn Online and Burlington Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ZhongAn Online P and Burlington Stores, you can compare the effects of market volatilities on ZhongAn Online and Burlington 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 ZhongAn Online with a short position of Burlington Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZhongAn Online and Burlington Stores.
Diversification Opportunities for ZhongAn Online and Burlington Stores
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZhongAn and Burlington is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding ZhongAn Online P and Burlington Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores and ZhongAn Online 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 ZhongAn Online P are associated (or correlated) with Burlington Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores has no effect on the direction of ZhongAn Online i.e., ZhongAn Online and Burlington Stores go up and down completely randomly.
Pair Corralation between ZhongAn Online and Burlington Stores
Assuming the 90 days trading horizon ZhongAn Online P is expected to under-perform the Burlington Stores. In addition to that, ZhongAn Online is 1.42 times more volatile than Burlington Stores. It trades about -0.14 of its total potential returns per unit of risk. Burlington Stores is currently generating about -0.05 per unit of volatility. If you would invest 28,200 in Burlington Stores on October 25, 2024 and sell it today you would lose (400.00) from holding Burlington Stores or give up 1.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZhongAn Online P vs. Burlington Stores
Performance |
| Timeline |
| ZhongAn Online P |
| Burlington Stores |
ZhongAn Online and Burlington Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZhongAn Online and Burlington Stores
The main advantage of trading using opposite ZhongAn Online and Burlington Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZhongAn Online position performs unexpectedly, Burlington 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 Burlington Stores will offset losses from the drop in Burlington Stores' long position.| ZhongAn Online vs. Cal Maine Foods | ZhongAn Online vs. UNITED RENTALS | ZhongAn Online vs. WILLIS LEASE FIN | ZhongAn Online vs. GRENKELEASING Dusseldorf |
| Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |