Correlation Between Burlington Stores and Delta Air
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Delta Air 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 Delta Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Delta Air Lines, you can compare the effects of market volatilities on Burlington Stores and Delta Air 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 Delta Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Delta Air.
Diversification Opportunities for Burlington Stores and Delta Air
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burlington and Delta is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Delta Air Lines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Delta Air Lines 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 Delta Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Delta Air Lines has no effect on the direction of Burlington Stores i.e., Burlington Stores and Delta Air go up and down completely randomly.
Pair Corralation between Burlington Stores and Delta Air
If you would invest 109,300 in Delta Air Lines on August 25, 2024 and sell it today you would earn a total of 20,600 from holding Delta Air Lines or generate 18.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Burlington Stores vs. Delta Air Lines
Performance |
| Timeline |
| Burlington Stores |
| Delta Air Lines |
Burlington Stores and Delta Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Delta Air
The main advantage of trading using opposite Burlington Stores and Delta Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Delta Air 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 Delta Air will offset losses from the drop in Delta Air's 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 |
| Delta Air vs. Micron Technology | Delta Air vs. McEwen Mining | Delta Air vs. DXC Technology | Delta Air vs. KB Home |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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