Correlation Between Pardee Resources and Burnham Holdings
Can any of the company-specific risk be diversified away by investing in both Pardee Resources and Burnham Holdings 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 Pardee Resources and Burnham Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pardee Resources Co and Burnham Holdings, you can compare the effects of market volatilities on Pardee Resources and Burnham Holdings 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 Pardee Resources with a short position of Burnham Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pardee Resources and Burnham Holdings.
Diversification Opportunities for Pardee Resources and Burnham Holdings
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pardee and Burnham is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Pardee Resources Co and Burnham Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burnham Holdings and Pardee Resources 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 Pardee Resources Co are associated (or correlated) with Burnham Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burnham Holdings has no effect on the direction of Pardee Resources i.e., Pardee Resources and Burnham Holdings go up and down completely randomly.
Pair Corralation between Pardee Resources and Burnham Holdings
Given the investment horizon of 90 days Pardee Resources Co is expected to generate 0.94 times more return on investment than Burnham Holdings. However, Pardee Resources Co is 1.07 times less risky than Burnham Holdings. It trades about 0.06 of its potential returns per unit of risk. Burnham Holdings is currently generating about 0.04 per unit of risk. If you would invest 22,786 in Pardee Resources Co on August 29, 2024 and sell it today you would earn a total of 8,214 from holding Pardee Resources Co or generate 36.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.04% |
| Values | Daily Returns |
Pardee Resources Co vs. Burnham Holdings
Performance |
| Timeline |
| Pardee Resources |
| Burnham Holdings |
Pardee Resources and Burnham Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pardee Resources and Burnham Holdings
The main advantage of trading using opposite Pardee Resources and Burnham Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pardee Resources position performs unexpectedly, Burnham Holdings 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 Burnham Holdings will offset losses from the drop in Burnham Holdings' long position.| Pardee Resources vs. Expro Group Holdings | Pardee Resources vs. ChampionX | Pardee Resources vs. Ranger Energy Services | Pardee Resources vs. Cactus Inc |
| Burnham Holdings vs. Deere Company | Burnham Holdings vs. Columbus McKinnon | Burnham Holdings vs. Hyster Yale Materials Handling | Burnham Holdings vs. Manitowoc |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |