Correlation Between Burlington Stores and AGRICULTBK HADR25
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and AGRICULTBK HADR25 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 AGRICULTBK HADR25 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and AGRICULTBK HADR25 YC, you can compare the effects of market volatilities on Burlington Stores and AGRICULTBK HADR25 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 AGRICULTBK HADR25. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and AGRICULTBK HADR25.
Diversification Opportunities for Burlington Stores and AGRICULTBK HADR25
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Burlington and AGRICULTBK is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and AGRICULTBK HADR25 YC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGRICULTBK HADR25 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 AGRICULTBK HADR25. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGRICULTBK HADR25 has no effect on the direction of Burlington Stores i.e., Burlington Stores and AGRICULTBK HADR25 go up and down completely randomly.
Pair Corralation between Burlington Stores and AGRICULTBK HADR25
Assuming the 90 days trading horizon Burlington Stores is expected to generate 1.26 times less return on investment than AGRICULTBK HADR25. But when comparing it to its historical volatility, Burlington Stores is 1.24 times less risky than AGRICULTBK HADR25. It trades about 0.1 of its potential returns per unit of risk. AGRICULTBK HADR25 YC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 707.00 in AGRICULTBK HADR25 YC on October 16, 2024 and sell it today you would earn a total of 563.00 from holding AGRICULTBK HADR25 YC or generate 79.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Burlington Stores vs. AGRICULTBK HADR25 YC
Performance |
| Timeline |
| Burlington Stores |
| AGRICULTBK HADR25 |
Burlington Stores and AGRICULTBK HADR25 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and AGRICULTBK HADR25
The main advantage of trading using opposite Burlington Stores and AGRICULTBK HADR25 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, AGRICULTBK HADR25 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 AGRICULTBK HADR25 will offset losses from the drop in AGRICULTBK HADR25's long position.| Burlington Stores vs. Cleanaway Waste Management | Burlington Stores vs. Media and Games | Burlington Stores vs. Waste Management | Burlington Stores vs. Scientific Games |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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