Correlation Between Burlington Stores and 025537AW1
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By analyzing existing cross correlation between Burlington Stores and AEP 595 01 NOV 32, you can compare the effects of market volatilities on Burlington Stores and 025537AW1 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 025537AW1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and 025537AW1.
Diversification Opportunities for Burlington Stores and 025537AW1
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Burlington and 025537AW1 is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and AEP 595 01 NOV 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AEP 595 01 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 025537AW1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AEP 595 01 has no effect on the direction of Burlington Stores i.e., Burlington Stores and 025537AW1 go up and down completely randomly.
Pair Corralation between Burlington Stores and 025537AW1
Given the investment horizon of 90 days Burlington Stores is expected to generate 2.31 times more return on investment than 025537AW1. However, Burlington Stores is 2.31 times more volatile than AEP 595 01 NOV 32. It trades about 0.09 of its potential returns per unit of risk. AEP 595 01 NOV 32 is currently generating about -0.13 per unit of risk. If you would invest 26,482 in Burlington Stores on September 4, 2024 and sell it today you would earn a total of 2,552 from holding Burlington Stores or generate 9.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Burlington Stores vs. AEP 595 01 NOV 32
Performance |
| Timeline |
| Burlington Stores |
| AEP 595 01 |
Burlington Stores and 025537AW1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and 025537AW1
The main advantage of trading using opposite Burlington Stores and 025537AW1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, 025537AW1 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 025537AW1 will offset losses from the drop in 025537AW1's long position.| Burlington Stores vs. The TJX Companies | Burlington Stores vs. Guess Inc | Burlington Stores vs. Urban Outfitters | Burlington Stores vs. Childrens Place |
| 025537AW1 vs. Arrow Electronics | 025537AW1 vs. Burlington Stores | 025537AW1 vs. Ross Stores | 025537AW1 vs. Skechers USA |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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