Correlation Between Platinum Investment and BURLINGTON STORES
Can any of the company-specific risk be diversified away by investing in both Platinum Investment 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 Platinum Investment and BURLINGTON STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Platinum Investment Management and BURLINGTON STORES, you can compare the effects of market volatilities on Platinum Investment 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 Platinum Investment with a short position of BURLINGTON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platinum Investment and BURLINGTON STORES.
Diversification Opportunities for Platinum Investment and BURLINGTON STORES
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Platinum and BURLINGTON is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Platinum Investment Management and BURLINGTON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BURLINGTON STORES and Platinum Investment 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 Platinum Investment 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 Platinum Investment i.e., Platinum Investment and BURLINGTON STORES go up and down completely randomly.
Pair Corralation between Platinum Investment and BURLINGTON STORES
Assuming the 90 days horizon Platinum Investment is expected to generate 3.92 times less return on investment than BURLINGTON STORES. In addition to that, Platinum Investment is 1.3 times more volatile than BURLINGTON STORES. It trades about 0.03 of its total potential returns per unit of risk. BURLINGTON STORES is currently generating about 0.13 per unit of volatility. If you would invest 12,400 in BURLINGTON STORES on September 14, 2024 and sell it today you would earn a total of 15,200 from holding BURLINGTON STORES or generate 122.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.64% |
| Values | Daily Returns |
Platinum Investment Management vs. BURLINGTON STORES
Performance |
| Timeline |
| Platinum Investment |
| BURLINGTON STORES |
Platinum Investment and BURLINGTON STORES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Platinum Investment and BURLINGTON STORES
The main advantage of trading using opposite Platinum Investment and BURLINGTON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Platinum Investment 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.| Platinum Investment vs. Ameriprise Financial | Platinum Investment vs. Ares Management Corp | Platinum Investment vs. Superior Plus Corp | Platinum Investment vs. SIVERS SEMICONDUCTORS AB |
| BURLINGTON STORES vs. Apple Inc | BURLINGTON STORES vs. Apple Inc | BURLINGTON STORES vs. Apple Inc | BURLINGTON STORES vs. Apple Inc |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |