Correlation Between Gruppo Mutuionline and Burlington Stores
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline 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 Gruppo Mutuionline and Burlington Stores into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo Mutuionline SpA and Burlington Stores, you can compare the effects of market volatilities on Gruppo Mutuionline 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 Gruppo Mutuionline with a short position of Burlington Stores. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and Burlington Stores.
Diversification Opportunities for Gruppo Mutuionline and Burlington Stores
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gruppo and Burlington is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and Burlington Stores in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores and Gruppo Mutuionline 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 Gruppo Mutuionline SpA 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 Gruppo Mutuionline i.e., Gruppo Mutuionline and Burlington Stores go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and Burlington Stores
Assuming the 90 days trading horizon Gruppo Mutuionline is expected to generate 1.23 times less return on investment than Burlington Stores. But when comparing it to its historical volatility, Gruppo Mutuionline SpA is 1.05 times less risky than Burlington Stores. It trades about 0.26 of its potential returns per unit of risk. Burlington Stores is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 23,400 in Burlington Stores on August 29, 2024 and sell it today you would earn a total of 4,000 from holding Burlington Stores or generate 17.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. Burlington Stores
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| Burlington Stores |
Gruppo Mutuionline and Burlington Stores Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and Burlington Stores
The main advantage of trading using opposite Gruppo Mutuionline and Burlington Stores positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline 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.| Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc |
| Burlington Stores vs. ePlay Digital | Burlington Stores vs. Silicon Motion Technology | Burlington Stores vs. PLAY2CHILL SA ZY | Burlington Stores vs. Playa Hotels Resorts |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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