Correlation Between Brunello Cucinelli and Burberry Group
Can any of the company-specific risk be diversified away by investing in both Brunello Cucinelli and Burberry Group 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 Brunello Cucinelli and Burberry Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brunello Cucinelli SpA and Burberry Group Plc, you can compare the effects of market volatilities on Brunello Cucinelli and Burberry Group 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 Brunello Cucinelli with a short position of Burberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brunello Cucinelli and Burberry Group.
Diversification Opportunities for Brunello Cucinelli and Burberry Group
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Brunello and Burberry is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Brunello Cucinelli SpA and Burberry Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burberry Group Plc and Brunello Cucinelli 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 Brunello Cucinelli SpA are associated (or correlated) with Burberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burberry Group Plc has no effect on the direction of Brunello Cucinelli i.e., Brunello Cucinelli and Burberry Group go up and down completely randomly.
Pair Corralation between Brunello Cucinelli and Burberry Group
Assuming the 90 days horizon Brunello Cucinelli SpA is expected to generate 0.76 times more return on investment than Burberry Group. However, Brunello Cucinelli SpA is 1.31 times less risky than Burberry Group. It trades about 0.04 of its potential returns per unit of risk. Burberry Group Plc is currently generating about -0.05 per unit of risk. If you would invest 4,748 in Brunello Cucinelli SpA on November 27, 2024 and sell it today you would earn a total of 1,743 from holding Brunello Cucinelli SpA or generate 36.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.15% |
| Values | Daily Returns |
Brunello Cucinelli SpA vs. Burberry Group Plc
Performance |
| Timeline |
| Brunello Cucinelli SpA |
| Burberry Group Plc |
Brunello Cucinelli and Burberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brunello Cucinelli and Burberry Group
The main advantage of trading using opposite Brunello Cucinelli and Burberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brunello Cucinelli position performs unexpectedly, Burberry Group 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 Burberry Group will offset losses from the drop in Burberry Group's long position.| Brunello Cucinelli vs. LVMH Mot Hennessy | Brunello Cucinelli vs. Hermes International SA | Brunello Cucinelli vs. Hermes International SCA | Brunello Cucinelli vs. Christian Dior SE |
| Burberry Group vs. Compagnie Financiere Richemont | Burberry Group vs. Hermes International SA | Burberry Group vs. Prada Spa PK | Burberry Group vs. Swatch Group AG |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |