Correlation Between Burlington Stores and Grupo Sports
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Grupo Sports 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 Grupo Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Grupo Sports World, you can compare the effects of market volatilities on Burlington Stores and Grupo Sports 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 Grupo Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Grupo Sports.
Diversification Opportunities for Burlington Stores and Grupo Sports
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burlington and Grupo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Grupo Sports World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Sports World 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 Grupo Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Sports World has no effect on the direction of Burlington Stores i.e., Burlington Stores and Grupo Sports go up and down completely randomly.
Pair Corralation between Burlington Stores and Grupo Sports
Assuming the 90 days trading horizon Burlington Stores is expected to generate 1.57 times more return on investment than Grupo Sports. However, Burlington Stores is 1.57 times more volatile than Grupo Sports World. It trades about 0.09 of its potential returns per unit of risk. Grupo Sports World is currently generating about 0.12 per unit of risk. If you would invest 223,000 in Burlington Stores on August 24, 2024 and sell it today you would earn a total of 202,300 from holding Burlington Stores or generate 90.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burlington Stores vs. Grupo Sports World
Performance |
| Timeline |
| Burlington Stores |
| Grupo Sports World |
Burlington Stores and Grupo Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Grupo Sports
The main advantage of trading using opposite Burlington Stores and Grupo Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Grupo Sports 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 Grupo Sports will offset losses from the drop in Grupo Sports' long position.| Burlington Stores vs. First Majestic Silver | Burlington Stores vs. Hoteles City Express | Burlington Stores vs. Deutsche Bank Aktiengesellschaft | Burlington Stores vs. Genworth Financial |
| Grupo Sports vs. GMxico Transportes SAB | Grupo Sports vs. Taiwan Semiconductor Manufacturing | Grupo Sports vs. Monster Beverage Corp | Grupo Sports vs. DXC Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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