Correlation Between Burlington Stores and Amkor Technology
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Amkor Technology 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 Amkor Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Amkor Technology, you can compare the effects of market volatilities on Burlington Stores and Amkor Technology 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 Amkor Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Amkor Technology.
Diversification Opportunities for Burlington Stores and Amkor Technology
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burlington and Amkor is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Amkor Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amkor Technology 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 Amkor Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amkor Technology has no effect on the direction of Burlington Stores i.e., Burlington Stores and Amkor Technology go up and down completely randomly.
Pair Corralation between Burlington Stores and Amkor Technology
Assuming the 90 days horizon Burlington Stores is expected to generate 1.15 times more return on investment than Amkor Technology. However, Burlington Stores is 1.15 times more volatile than Amkor Technology. It trades about 0.24 of its potential returns per unit of risk. Amkor Technology is currently generating about 0.03 per unit of risk. If you would invest 24,200 in Burlington Stores on September 13, 2024 and sell it today you would earn a total of 3,200 from holding Burlington Stores or generate 13.22% 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. Amkor Technology
Performance |
| Timeline |
| Burlington Stores |
| Amkor Technology |
Burlington Stores and Amkor Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Amkor Technology
The main advantage of trading using opposite Burlington Stores and Amkor Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Amkor Technology 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 Amkor Technology will offset losses from the drop in Amkor Technology's long position.| Burlington Stores vs. Walmart | Burlington Stores vs. Costco Wholesale | Burlington Stores vs. Dollarama | Burlington Stores vs. Superior Plus Corp |
| Amkor Technology vs. Taiwan Semiconductor Manufacturing | Amkor Technology vs. Broadcom | Amkor Technology vs. Superior Plus Corp | Amkor Technology vs. SIVERS SEMICONDUCTORS AB |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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