Correlation Between Burlington Stores and DXC Technology
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and DXC Technology 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 DXC Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and DXC Technology, you can compare the effects of market volatilities on Burlington Stores and DXC Technology 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 DXC Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and DXC Technology.
Diversification Opportunities for Burlington Stores and DXC Technology
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burlington and DXC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and DXC Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DXC Technology 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 DXC Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DXC Technology has no effect on the direction of Burlington Stores i.e., Burlington Stores and DXC Technology go up and down completely randomly.
Pair Corralation between Burlington Stores and DXC Technology
If you would invest 36,000 in DXC Technology on August 27, 2024 and sell it today you would earn a total of 0.00 from holding DXC Technology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Burlington Stores vs. DXC Technology
Performance |
| Timeline |
| Burlington Stores |
| DXC Technology |
Burlington Stores and DXC Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and DXC Technology
The main advantage of trading using opposite Burlington Stores and DXC Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, DXC Technology 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 DXC Technology will offset losses from the drop in DXC Technology's long position.| Burlington Stores vs. Cognizant Technology Solutions | Burlington Stores vs. United States Steel | Burlington Stores vs. Verizon Communications | Burlington Stores vs. Genworth Financial |
| DXC Technology vs. Grupo Sports World | DXC Technology vs. Ross Stores | DXC Technology vs. Prudential Financial | DXC Technology vs. Southern Copper |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| 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 | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |