Correlation Between Burlington Stores and Zedge
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Zedge 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 Zedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Zedge Inc, you can compare the effects of market volatilities on Burlington Stores and Zedge 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 Zedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Zedge.
Diversification Opportunities for Burlington Stores and Zedge
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Burlington and Zedge is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Zedge Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedge Inc 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 Zedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedge Inc has no effect on the direction of Burlington Stores i.e., Burlington Stores and Zedge go up and down completely randomly.
Pair Corralation between Burlington Stores and Zedge
Given the investment horizon of 90 days Burlington Stores is expected to generate 1.16 times less return on investment than Zedge. But when comparing it to its historical volatility, Burlington Stores is 2.6 times less risky than Zedge. It trades about 0.09 of its potential returns per unit of risk. Zedge Inc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 228.00 in Zedge Inc on September 14, 2024 and sell it today you would earn a total of 45.00 from holding Zedge Inc or generate 19.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Burlington Stores vs. Zedge Inc
Performance |
| Timeline |
| Burlington Stores |
| Zedge Inc |
Burlington Stores and Zedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Burlington Stores and Zedge
The main advantage of trading using opposite Burlington Stores and Zedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Zedge 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 Zedge will offset losses from the drop in Zedge's long position.| Burlington Stores vs. Capri Holdings | Burlington Stores vs. Movado Group | Burlington Stores vs. Tapestry | Burlington Stores vs. Brilliant Earth Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |