Correlation Between BURLINGTON STORES and SES SA
Can any of the company-specific risk be diversified away by investing in both BURLINGTON STORES and SES SA 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 SES SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BURLINGTON STORES and SES SA, you can compare the effects of market volatilities on BURLINGTON STORES and SES SA 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 SES SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of BURLINGTON STORES and SES SA.
Diversification Opportunities for BURLINGTON STORES and SES SA
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BURLINGTON and SES is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding BURLINGTON STORES and SES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SES SA 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 SES SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SES SA has no effect on the direction of BURLINGTON STORES i.e., BURLINGTON STORES and SES SA go up and down completely randomly.
Pair Corralation between BURLINGTON STORES and SES SA
Assuming the 90 days trading horizon BURLINGTON STORES is expected to generate 1.35 times more return on investment than SES SA. However, BURLINGTON STORES is 1.35 times more volatile than SES SA. It trades about 0.4 of its potential returns per unit of risk. SES SA is currently generating about -0.41 per unit of risk. If you would invest 22,200 in BURLINGTON STORES on September 4, 2024 and sell it today you would earn a total of 4,400 from holding BURLINGTON STORES or generate 19.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BURLINGTON STORES vs. SES SA
Performance |
| Timeline |
| BURLINGTON STORES |
| SES SA |
BURLINGTON STORES and SES SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BURLINGTON STORES and SES SA
The main advantage of trading using opposite BURLINGTON STORES and SES SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BURLINGTON STORES position performs unexpectedly, SES SA 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 SES SA will offset losses from the drop in SES SA's long position.| BURLINGTON STORES vs. TOTAL GABON | BURLINGTON STORES vs. Walgreens Boots Alliance | BURLINGTON STORES vs. Peak Resources Limited |
| SES SA vs. Vastned Retail NV | SES SA vs. BURLINGTON STORES | SES SA vs. Ming Le Sports | SES SA vs. United States Steel |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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