Correlation Between Annaly Capital and Burlington Stores,
Can any of the company-specific risk be diversified away by investing in both Annaly Capital 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 Annaly Capital and Burlington Stores, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Annaly Capital Management, and Burlington Stores,, you can compare the effects of market volatilities on Annaly Capital 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 Annaly Capital with a short position of Burlington Stores,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Annaly Capital and Burlington Stores,.
Diversification Opportunities for Annaly Capital and Burlington Stores,
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Annaly and Burlington is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Annaly Capital Management, and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, and Annaly Capital 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 Annaly Capital Management, 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 Annaly Capital i.e., Annaly Capital and Burlington Stores, go up and down completely randomly.
Pair Corralation between Annaly Capital and Burlington Stores,
Assuming the 90 days trading horizon Annaly Capital Management, is expected to under-perform the Burlington Stores,. In addition to that, Annaly Capital is 1.36 times more volatile than Burlington Stores,. It trades about -0.09 of its total potential returns per unit of risk. Burlington Stores, is currently generating about -0.05 per unit of volatility. If you would invest 5,976 in Burlington Stores, on October 12, 2024 and sell it today you would lose (50.00) from holding Burlington Stores, or give up 0.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Annaly Capital Management, vs. Burlington Stores,
Performance |
| Timeline |
| Annaly Capital Manag |
| Burlington Stores, |
Annaly Capital and Burlington Stores, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Annaly Capital and Burlington Stores,
The main advantage of trading using opposite Annaly Capital and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Annaly Capital 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,'s long position.| Annaly Capital vs. Verizon Communications | Annaly Capital vs. Unity Software | Annaly Capital vs. T Mobile | Annaly Capital vs. Metalurgica Gerdau SA |
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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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