Correlation Between STAG Industrial, and Burlington Stores,
Can any of the company-specific risk be diversified away by investing in both STAG Industrial, 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 STAG Industrial, and Burlington Stores, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STAG Industrial, and Burlington Stores,, you can compare the effects of market volatilities on STAG Industrial, 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 STAG Industrial, with a short position of Burlington Stores,. Check out your portfolio center. Please also check ongoing floating volatility patterns of STAG Industrial, and Burlington Stores,.
Diversification Opportunities for STAG Industrial, and Burlington Stores,
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between STAG and Burlington is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding STAG Industrial, and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, and STAG Industrial, 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 STAG Industrial, 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 STAG Industrial, i.e., STAG Industrial, and Burlington Stores, go up and down completely randomly.
Pair Corralation between STAG Industrial, and Burlington Stores,
Assuming the 90 days trading horizon STAG Industrial, is expected to generate 3.1 times less return on investment than Burlington Stores,. But when comparing it to its historical volatility, STAG Industrial, is 2.18 times less risky than Burlington Stores,. It trades about 0.03 of its potential returns per unit of risk. Burlington Stores, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,000 in Burlington Stores, on October 11, 2024 and sell it today you would earn a total of 1,926 from holding Burlington Stores, or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.54% |
| Values | Daily Returns |
STAG Industrial, vs. Burlington Stores,
Performance |
| Timeline |
| STAG Industrial, |
| Burlington Stores, |
STAG Industrial, and Burlington Stores, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STAG Industrial, and Burlington Stores,
The main advantage of trading using opposite STAG Industrial, and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STAG Industrial, 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.| STAG Industrial, vs. Taiwan Semiconductor Manufacturing | STAG Industrial, vs. Apple Inc | STAG Industrial, vs. Alibaba Group Holding | STAG Industrial, vs. Banco Santander Chile |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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