Correlation Between BURLINGTON STORES and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both BURLINGTON STORES and Grupo Carso 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 BURLINGTON STORES and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BURLINGTON STORES and Grupo Carso SAB, you can compare the effects of market volatilities on BURLINGTON STORES and Grupo Carso 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 BURLINGTON STORES with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of BURLINGTON STORES and Grupo Carso.
Diversification Opportunities for BURLINGTON STORES and Grupo Carso
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BURLINGTON and Grupo is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding BURLINGTON STORES and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and BURLINGTON STORES 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 BURLINGTON STORES are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of BURLINGTON STORES i.e., BURLINGTON STORES and Grupo Carso go up and down completely randomly.
Pair Corralation between BURLINGTON STORES and Grupo Carso
Assuming the 90 days trading horizon BURLINGTON STORES is expected to under-perform the Grupo Carso. But the stock apears to be less risky and, when comparing its historical volatility, BURLINGTON STORES is 1.39 times less risky than Grupo Carso. The stock trades about -0.17 of its potential returns per unit of risk. The Grupo Carso SAB is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 515.00 in Grupo Carso SAB on November 7, 2024 and sell it today you would earn a total of 35.00 from holding Grupo Carso SAB or generate 6.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BURLINGTON STORES vs. Grupo Carso SAB
Performance |
| Timeline |
| BURLINGTON STORES |
| Grupo Carso SAB |
BURLINGTON STORES and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BURLINGTON STORES and Grupo Carso
The main advantage of trading using opposite BURLINGTON STORES and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BURLINGTON STORES position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| BURLINGTON STORES vs. Benchmark Electronics | BURLINGTON STORES vs. Meiko Electronics Co | BURLINGTON STORES vs. Jacquet Metal Service | BURLINGTON STORES vs. Cleanaway Waste Management |
| Grupo Carso vs. FIRST SHIP LEASE | Grupo Carso vs. Fukuyama Transporting Co | Grupo Carso vs. Transport International Holdings | Grupo Carso vs. PARKEN Sport Entertainment |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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