Correlation Between Burlington Stores and SunOpta
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and SunOpta 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 SunOpta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and SunOpta, you can compare the effects of market volatilities on Burlington Stores and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and SunOpta.
Diversification Opportunities for Burlington Stores and SunOpta
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burlington and SunOpta is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Burlington Stores i.e., Burlington Stores and SunOpta go up and down completely randomly.
Pair Corralation between Burlington Stores and SunOpta
Given the investment horizon of 90 days Burlington Stores is expected to generate 1.31 times less return on investment than SunOpta. But when comparing it to its historical volatility, Burlington Stores is 1.23 times less risky than SunOpta. It trades about 0.33 of its potential returns per unit of risk. SunOpta is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 655.00 in SunOpta on September 1, 2024 and sell it today you would earn a total of 120.00 from holding SunOpta or generate 18.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burlington Stores vs. SunOpta
Performance |
| Timeline |
| Burlington Stores |
| SunOpta |
Burlington Stores and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and SunOpta
The main advantage of trading using opposite Burlington Stores and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Burlington Stores vs. Capri Holdings | Burlington Stores vs. Movado Group | Burlington Stores vs. Tapestry | Burlington Stores vs. Brilliant Earth Group |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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