Correlation Between Burlington Stores and Dunelm Group
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and Dunelm 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 Burlington Stores and Dunelm Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and Dunelm Group PLC, you can compare the effects of market volatilities on Burlington Stores and Dunelm 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 Burlington Stores with a short position of Dunelm Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and Dunelm Group.
Diversification Opportunities for Burlington Stores and Dunelm Group
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Burlington and Dunelm is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Dunelm Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dunelm Group PLC and Burlington Stores 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 Burlington Stores are associated (or correlated) with Dunelm Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dunelm Group PLC has no effect on the direction of Burlington Stores i.e., Burlington Stores and Dunelm Group go up and down completely randomly.
Pair Corralation between Burlington Stores and Dunelm Group
Given the investment horizon of 90 days Burlington Stores is expected to generate 2.28 times more return on investment than Dunelm Group. However, Burlington Stores is 2.28 times more volatile than Dunelm Group PLC. It trades about 0.03 of its potential returns per unit of risk. Dunelm Group PLC is currently generating about -0.11 per unit of risk. If you would invest 21,961 in Burlington Stores on March 17, 2024 and sell it today you would earn a total of 841.00 from holding Burlington Stores or generate 3.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Burlington Stores vs. Dunelm Group PLC
Performance |
Timeline |
Burlington Stores |
Dunelm Group PLC |
Burlington Stores and Dunelm Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Burlington Stores and Dunelm Group
The main advantage of trading using opposite Burlington Stores and Dunelm Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Dunelm 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 Dunelm Group will offset losses from the drop in Dunelm Group's long position.Burlington Stores vs. The TJX Companies | Burlington Stores vs. Guess Inc | Burlington Stores vs. Urban Outfitters | Burlington Stores vs. Childrens Place |
Dunelm Group vs. OReilly Automotive | Dunelm Group vs. AutoZone | Dunelm Group vs. Alimentation Couchen Tard | Dunelm Group vs. Tractor Supply |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data |