Correlation Between Burlington Stores and US National
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and US National 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 US National into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and US National Telecom, you can compare the effects of market volatilities on Burlington Stores and US National 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 US National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and US National.
Diversification Opportunities for Burlington Stores and US National
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Burlington and USNL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and US National Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US National Telecom 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 US National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US National Telecom has no effect on the direction of Burlington Stores i.e., Burlington Stores and US National go up and down completely randomly.
Pair Corralation between Burlington Stores and US National
If you would invest 18,800 in Burlington Stores on March 7, 2024 and sell it today you would earn a total of 4,098 from holding Burlington Stores or generate 21.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Burlington Stores vs. US National Telecom
Performance |
Timeline |
Burlington Stores |
US National Telecom |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Burlington Stores and US National Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Burlington Stores and US National
The main advantage of trading using opposite Burlington Stores and US National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, US National 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 US National will offset losses from the drop in US National's long position.Burlington Stores vs. Childrens Place | Burlington Stores vs. Abercrombie Fitch | Burlington Stores vs. Lululemon Athletica |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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