Correlation Between BURLINGTON STORES and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both BURLINGTON STORES and Gruppo Mutuionline 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 Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BURLINGTON STORES and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on BURLINGTON STORES and Gruppo Mutuionline 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 Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of BURLINGTON STORES and Gruppo Mutuionline.
Diversification Opportunities for BURLINGTON STORES and Gruppo Mutuionline
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BURLINGTON and Gruppo is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding BURLINGTON STORES and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA 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 Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of BURLINGTON STORES i.e., BURLINGTON STORES and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between BURLINGTON STORES and Gruppo Mutuionline
Assuming the 90 days trading horizon BURLINGTON STORES is expected to generate 4.8 times less return on investment than Gruppo Mutuionline. But when comparing it to its historical volatility, BURLINGTON STORES is 1.39 times less risky than Gruppo Mutuionline. It trades about 0.06 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 3,535 in Gruppo Mutuionline SpA on November 4, 2024 and sell it today you would earn a total of 265.00 from holding Gruppo Mutuionline SpA or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BURLINGTON STORES vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| BURLINGTON STORES |
| Gruppo Mutuionline SpA |
BURLINGTON STORES and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BURLINGTON STORES and Gruppo Mutuionline
The main advantage of trading using opposite BURLINGTON STORES and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BURLINGTON STORES position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| BURLINGTON STORES vs. Planet Fitness | BURLINGTON STORES vs. Nok Airlines PCL | BURLINGTON STORES vs. Phibro Animal Health | BURLINGTON STORES vs. Siemens Healthineers AG |
| Gruppo Mutuionline vs. Cal Maine Foods | Gruppo Mutuionline vs. PREMIER FOODS | Gruppo Mutuionline vs. TreeHouse Foods | Gruppo Mutuionline vs. CITY OFFICE REIT |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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