Correlation Between Burlington Stores and Applied Materials
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Applied Materials 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 Applied Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Applied Materials, you can compare the effects of market volatilities on Burlington Stores and Applied Materials 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 Applied Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Applied Materials.
Diversification Opportunities for Burlington Stores and Applied Materials
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burlington and Applied is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Applied Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials 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 Applied Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials has no effect on the direction of Burlington Stores i.e., Burlington Stores and Applied Materials go up and down completely randomly.
Pair Corralation between Burlington Stores and Applied Materials
If you would invest 425,300 in Burlington Stores on August 25, 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 | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Burlington Stores vs. Applied Materials
Performance |
| Timeline |
| Burlington Stores |
| Applied Materials |
Burlington Stores and Applied Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Applied Materials
The main advantage of trading using opposite Burlington Stores and Applied Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Applied Materials 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 Applied Materials will offset losses from the drop in Applied Materials' long position.| Burlington Stores vs. Samsung Electronics Co | Burlington Stores vs. DXC Technology | Burlington Stores vs. Martin Marietta Materials | Burlington Stores vs. Taiwan Semiconductor Manufacturing |
| Applied Materials vs. The Select Sector | Applied Materials vs. Promotora y Operadora | Applied Materials vs. iShares Global Timber | Applied Materials vs. SPDR Series Trust |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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