Correlation Between Burlington Stores and 824348BP0
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By analyzing existing cross correlation between Burlington Stores and SHW 29 15 MAR 52, you can compare the effects of market volatilities on Burlington Stores and 824348BP0 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 824348BP0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and 824348BP0.
Diversification Opportunities for Burlington Stores and 824348BP0
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Burlington and 824348BP0 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and SHW 29 15 MAR 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHW 29 15 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 824348BP0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHW 29 15 has no effect on the direction of Burlington Stores i.e., Burlington Stores and 824348BP0 go up and down completely randomly.
Pair Corralation between Burlington Stores and 824348BP0
Given the investment horizon of 90 days Burlington Stores is expected to generate 1.04 times less return on investment than 824348BP0. But when comparing it to its historical volatility, Burlington Stores is 1.56 times less risky than 824348BP0. It trades about 0.29 of its potential returns per unit of risk. SHW 29 15 MAR 52 is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 6,326 in SHW 29 15 MAR 52 on September 13, 2024 and sell it today you would earn a total of 602.00 from holding SHW 29 15 MAR 52 or generate 9.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Burlington Stores vs. SHW 29 15 MAR 52
Performance |
| Timeline |
| Burlington Stores |
| SHW 29 15 |
Burlington Stores and 824348BP0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and 824348BP0
The main advantage of trading using opposite Burlington Stores and 824348BP0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, 824348BP0 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 824348BP0 will offset losses from the drop in 824348BP0's long position.| Burlington Stores vs. The TJX Companies | Burlington Stores vs. Guess Inc | Burlington Stores vs. Urban Outfitters | Burlington Stores vs. Childrens Place |
| 824348BP0 vs. United Parks Resorts | 824348BP0 vs. Academy Sports Outdoors | 824348BP0 vs. JD Sports Fashion | 824348BP0 vs. BRP Inc |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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