Correlation Between BOS BETTER and BURLINGTON STORES
Can any of the company-specific risk be diversified away by investing in both BOS BETTER 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 BOS BETTER and BURLINGTON STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BOS BETTER ONLINE and BURLINGTON STORES, you can compare the effects of market volatilities on BOS BETTER 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 BOS BETTER with a short position of BURLINGTON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BOS BETTER and BURLINGTON STORES.
Diversification Opportunities for BOS BETTER and BURLINGTON STORES
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BOS and BURLINGTON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BOS BETTER ONLINE and BURLINGTON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BURLINGTON STORES and BOS BETTER 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 BOS BETTER ONLINE 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 BOS BETTER i.e., BOS BETTER and BURLINGTON STORES go up and down completely randomly.
Pair Corralation between BOS BETTER and BURLINGTON STORES
If you would invest 21,200 in BURLINGTON STORES on October 26, 2024 and sell it today you would earn a total of 6,600 from holding BURLINGTON STORES or generate 31.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
BOS BETTER ONLINE vs. BURLINGTON STORES
Performance |
| Timeline |
| BOS BETTER ONLINE |
| BURLINGTON STORES |
BOS BETTER and BURLINGTON STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BOS BETTER and BURLINGTON STORES
The main advantage of trading using opposite BOS BETTER and BURLINGTON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BOS BETTER 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's long position.| BOS BETTER vs. Acadia Healthcare | BOS BETTER vs. JAPAN AIRLINES | BOS BETTER vs. CVS Health | BOS BETTER vs. UNIVMUSIC GRPADR050 |
| BURLINGTON STORES vs. PLANT VEDA FOODS | BURLINGTON STORES vs. Aristocrat Leisure Limited | BURLINGTON STORES vs. THAI BEVERAGE | BURLINGTON STORES vs. Gaming and Leisure |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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