Correlation Between Lloyds Banking and Burlington Stores
Can any of the company-specific risk be diversified away by investing in both Lloyds Banking and Burlington Stores 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 Lloyds Banking and Burlington Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lloyds Banking Group and Burlington Stores, you can compare the effects of market volatilities on Lloyds Banking and Burlington Stores 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 Lloyds Banking with a short position of Burlington Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lloyds Banking and Burlington Stores.
Diversification Opportunities for Lloyds Banking and Burlington Stores
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lloyds and Burlington is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lloyds Banking Group and Burlington Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores and Lloyds Banking 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 Lloyds Banking Group are associated (or correlated) with Burlington Stores. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burlington Stores has no effect on the direction of Lloyds Banking i.e., Lloyds Banking and Burlington Stores go up and down completely randomly.
Pair Corralation between Lloyds Banking and Burlington Stores
If you would invest 425,300 in Burlington Stores on August 31, 2024 and sell it today you would earn a total of 168,900 from holding Burlington Stores or generate 39.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lloyds Banking Group vs. Burlington Stores
Performance |
| Timeline |
| Lloyds Banking Group |
| Burlington Stores |
Lloyds Banking and Burlington Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lloyds Banking and Burlington Stores
The main advantage of trading using opposite Lloyds Banking and Burlington Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lloyds Banking position performs unexpectedly, Burlington Stores 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 Burlington Stores will offset losses from the drop in Burlington Stores' long position.| Lloyds Banking vs. Southern Copper | Lloyds Banking vs. Ameriprise Financial | Lloyds Banking vs. The Bank of | Lloyds Banking vs. McEwen Mining |
| Burlington Stores vs. First Majestic Silver | Burlington Stores vs. Grupo Sports World | Burlington Stores vs. Verizon Communications | Burlington Stores vs. New Oriental Education |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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