Correlation Between Watches Of and Burberry Group
Can any of the company-specific risk be diversified away by investing in both Watches Of and Burberry Group 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 Watches Of and Burberry Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Watches of Switzerland and Burberry Group Plc, you can compare the effects of market volatilities on Watches Of and Burberry Group 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 Watches Of with a short position of Burberry Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Watches Of and Burberry Group.
Diversification Opportunities for Watches Of and Burberry Group
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Watches and Burberry is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Watches of Switzerland and Burberry Group Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burberry Group Plc and Watches Of 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 Watches of Switzerland are associated (or correlated) with Burberry Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burberry Group Plc has no effect on the direction of Watches Of i.e., Watches Of and Burberry Group go up and down completely randomly.
Pair Corralation between Watches Of and Burberry Group
If you would invest 1,250 in Burberry Group Plc on September 5, 2024 and sell it today you would lose (92.00) from holding Burberry Group Plc or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.81% |
| Values | Daily Returns |
Watches of Switzerland vs. Burberry Group Plc
Performance |
| Timeline |
| Watches of Switzerland |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| Burberry Group Plc |
Watches Of and Burberry Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Watches Of and Burberry Group
The main advantage of trading using opposite Watches Of and Burberry Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Watches Of position performs unexpectedly, Burberry Group 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 Burberry Group will offset losses from the drop in Burberry Group's long position.| Watches Of vs. Brunello Cucinelli SpA | Watches Of vs. Swatch Group AG | Watches Of vs. Prada Spa PK | Watches Of vs. Christian Dior SE |
| Burberry Group vs. Prada Spa PK | Burberry Group vs. Compagnie Financire Richemont | Burberry Group vs. Compagnie Financiere Richemont | Burberry Group vs. Hermes International SA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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