Correlation Between Burlington Stores and Trade Desk
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Trade Desk 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 Trade Desk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and The Trade Desk, you can compare the effects of market volatilities on Burlington Stores and Trade Desk 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 Trade Desk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Trade Desk.
Diversification Opportunities for Burlington Stores and Trade Desk
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Burlington and Trade is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and The Trade Desk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trade Desk 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 Trade Desk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trade Desk has no effect on the direction of Burlington Stores i.e., Burlington Stores and Trade Desk go up and down completely randomly.
Pair Corralation between Burlington Stores and Trade Desk
Assuming the 90 days trading horizon Burlington Stores is expected to generate 0.82 times more return on investment than Trade Desk. However, Burlington Stores is 1.22 times less risky than Trade Desk. It trades about 0.01 of its potential returns per unit of risk. The Trade Desk is currently generating about -0.07 per unit of risk. If you would invest 28,200 in Burlington Stores on November 4, 2024 and sell it today you would earn a total of 0.00 from holding Burlington Stores or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burlington Stores vs. The Trade Desk
Performance |
| Timeline |
| Burlington Stores |
| Trade Desk |
Burlington Stores and Trade Desk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Trade Desk
The main advantage of trading using opposite Burlington Stores and Trade Desk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Trade Desk 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 Trade Desk will offset losses from the drop in Trade Desk's long position.| Burlington Stores vs. Mount Gibson Iron | Burlington Stores vs. ANGANG STEEL H | Burlington Stores vs. SOLSTAD OFFSHORE NK | Burlington Stores vs. Eidesvik Offshore ASA |
| Trade Desk vs. LG Display Co | Trade Desk vs. PLAY2CHILL SA ZY | Trade Desk vs. PLAYTECH | Trade Desk vs. InPlay Oil Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |