Correlation Between BURLINGTON STORES and Kinepolis Group
Can any of the company-specific risk be diversified away by investing in both BURLINGTON STORES and Kinepolis 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 BURLINGTON STORES and Kinepolis Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BURLINGTON STORES and Kinepolis Group NV, you can compare the effects of market volatilities on BURLINGTON STORES and Kinepolis 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 BURLINGTON STORES with a short position of Kinepolis Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of BURLINGTON STORES and Kinepolis Group.
Diversification Opportunities for BURLINGTON STORES and Kinepolis Group
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between BURLINGTON and Kinepolis is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding BURLINGTON STORES and Kinepolis Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinepolis Group NV 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 Kinepolis Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinepolis Group NV has no effect on the direction of BURLINGTON STORES i.e., BURLINGTON STORES and Kinepolis Group go up and down completely randomly.
Pair Corralation between BURLINGTON STORES and Kinepolis Group
Assuming the 90 days trading horizon BURLINGTON STORES is expected to generate 1.34 times more return on investment than Kinepolis Group. However, BURLINGTON STORES is 1.34 times more volatile than Kinepolis Group NV. It trades about 0.31 of its potential returns per unit of risk. Kinepolis Group NV is currently generating about -0.01 per unit of risk. If you would invest 24,600 in BURLINGTON STORES on September 14, 2024 and sell it today you would earn a total of 3,400 from holding BURLINGTON STORES or generate 13.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BURLINGTON STORES vs. Kinepolis Group NV
Performance |
| Timeline |
| BURLINGTON STORES |
| Kinepolis Group NV |
BURLINGTON STORES and Kinepolis Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BURLINGTON STORES and Kinepolis Group
The main advantage of trading using opposite BURLINGTON STORES and Kinepolis Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BURLINGTON STORES position performs unexpectedly, Kinepolis 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 Kinepolis Group will offset losses from the drop in Kinepolis Group's long position.| BURLINGTON STORES vs. Apple Inc | BURLINGTON STORES vs. Apple Inc | BURLINGTON STORES vs. Apple Inc | BURLINGTON STORES vs. Apple Inc |
| Kinepolis Group vs. SPARTAN STORES | Kinepolis Group vs. BURLINGTON STORES | Kinepolis Group vs. BOSTON BEER A | Kinepolis Group vs. Fast Retailing 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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