Correlation Between Burlington Stores and Virtus Investment
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Virtus Investment 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 Virtus Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Virtus Investment Partners, you can compare the effects of market volatilities on Burlington Stores and Virtus Investment 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 Virtus Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Virtus Investment.
Diversification Opportunities for Burlington Stores and Virtus Investment
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Burlington and Virtus is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Virtus Investment Partners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Investment 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 Virtus Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Investment has no effect on the direction of Burlington Stores i.e., Burlington Stores and Virtus Investment go up and down completely randomly.
Pair Corralation between Burlington Stores and Virtus Investment
Assuming the 90 days trading horizon Burlington Stores is expected to generate 1.03 times more return on investment than Virtus Investment. However, Burlington Stores is 1.03 times more volatile than Virtus Investment Partners. It trades about 0.03 of its potential returns per unit of risk. Virtus Investment Partners is currently generating about -0.28 per unit of risk. If you would invest 27,400 in Burlington Stores on October 28, 2024 and sell it today you would earn a total of 400.00 from holding Burlington Stores or generate 1.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burlington Stores vs. Virtus Investment Partners
Performance |
| Timeline |
| Burlington Stores |
| Virtus Investment |
Burlington Stores and Virtus Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Virtus Investment
The main advantage of trading using opposite Burlington Stores and Virtus Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Virtus Investment 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 Virtus Investment will offset losses from the drop in Virtus Investment's long position.| Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc | Burlington Stores vs. Apple Inc |
| Virtus Investment vs. Suntory Beverage Food | Virtus Investment vs. JIAHUA STORES | Virtus Investment vs. Chesapeake Utilities | Virtus Investment vs. RETAIL FOOD GROUP |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |