Correlation Between Burlington Stores and Nexstar Media
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Nexstar Media 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 Nexstar Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Nexstar Media Group, you can compare the effects of market volatilities on Burlington Stores and Nexstar Media 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 Nexstar Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Nexstar Media.
Diversification Opportunities for Burlington Stores and Nexstar Media
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Burlington and Nexstar is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Nexstar Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nexstar Media Group 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 Nexstar Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nexstar Media Group has no effect on the direction of Burlington Stores i.e., Burlington Stores and Nexstar Media go up and down completely randomly.
Pair Corralation between Burlington Stores and Nexstar Media
Assuming the 90 days trading horizon Burlington Stores is expected to generate 1.05 times more return on investment than Nexstar Media. However, Burlington Stores is 1.05 times more volatile than Nexstar Media Group. It trades about 0.03 of its potential returns per unit of risk. Nexstar Media Group is currently generating about 0.0 per unit of risk. If you would invest 27,800 in Burlington Stores on October 21, 2024 and sell it today you would earn a total of 200.00 from holding Burlington Stores or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burlington Stores vs. Nexstar Media Group
Performance |
| Timeline |
| Burlington Stores |
| Nexstar Media Group |
Burlington Stores and Nexstar Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Nexstar Media
The main advantage of trading using opposite Burlington Stores and Nexstar Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Nexstar Media 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 Nexstar Media will offset losses from the drop in Nexstar Media's long position.| Burlington Stores vs. MCEWEN MINING INC | Burlington Stores vs. FAIR ISAAC | Burlington Stores vs. Forsys Metals Corp | Burlington Stores vs. CHINA SOUTHN AIR H |
| Nexstar Media vs. BOSTON BEER A | Nexstar Media vs. Commercial Vehicle Group | Nexstar Media vs. CITY OFFICE REIT | Nexstar Media vs. NURAN WIRELESS INC |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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