Correlation Between Burlington Stores and Vastned Retail
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Vastned Retail 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 Vastned Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Vastned Retail NV, you can compare the effects of market volatilities on Burlington Stores and Vastned Retail 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 Vastned Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Vastned Retail.
Diversification Opportunities for Burlington Stores and Vastned Retail
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burlington and Vastned is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Vastned Retail NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vastned Retail NV 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 Vastned Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vastned Retail NV has no effect on the direction of Burlington Stores i.e., Burlington Stores and Vastned Retail go up and down completely randomly.
Pair Corralation between Burlington Stores and Vastned Retail
Assuming the 90 days trading horizon Burlington Stores is expected to generate 2.8 times more return on investment than Vastned Retail. However, Burlington Stores is 2.8 times more volatile than Vastned Retail NV. It trades about 0.3 of its potential returns per unit of risk. Vastned Retail NV is currently generating about -0.13 per unit of risk. If you would invest 23,400 in Burlington Stores on August 28, 2024 and sell it today you would earn a total of 3,800 from holding Burlington Stores or generate 16.24% 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. Vastned Retail NV
Performance |
| Timeline |
| Burlington Stores |
| Vastned Retail NV |
Burlington Stores and Vastned Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Vastned Retail
The main advantage of trading using opposite Burlington Stores and Vastned Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Vastned Retail 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 Vastned Retail will offset losses from the drop in Vastned Retail's long position.| Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc |
| Vastned Retail vs. Vicinity Centres | Vastned Retail vs. Superior Plus Corp | Vastned Retail vs. NMI Holdings | Vastned Retail vs. Origin Agritech |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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