Correlation Between BURLINGTON STORES and Pets At
Can any of the company-specific risk be diversified away by investing in both BURLINGTON STORES and Pets At 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 Pets At into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BURLINGTON STORES and Pets at Home, you can compare the effects of market volatilities on BURLINGTON STORES and Pets At 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 Pets At. Check out your portfolio center. Please also check ongoing floating volatility patterns of BURLINGTON STORES and Pets At.
Diversification Opportunities for BURLINGTON STORES and Pets At
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between BURLINGTON and Pets is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding BURLINGTON STORES and Pets at Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pets at Home 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 Pets At. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pets at Home has no effect on the direction of BURLINGTON STORES i.e., BURLINGTON STORES and Pets At go up and down completely randomly.
Pair Corralation between BURLINGTON STORES and Pets At
Assuming the 90 days trading horizon BURLINGTON STORES is expected to generate 1.52 times more return on investment than Pets At. However, BURLINGTON STORES is 1.52 times more volatile than Pets at Home. It trades about 0.13 of its potential returns per unit of risk. Pets at Home is currently generating about 0.08 per unit of risk. If you would invest 18,800 in BURLINGTON STORES on April 22, 2025 and sell it today you would earn a total of 3,400 from holding BURLINGTON STORES or generate 18.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
BURLINGTON STORES vs. Pets at Home
Performance |
Timeline |
BURLINGTON STORES |
Pets at Home |
BURLINGTON STORES and Pets At Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BURLINGTON STORES and Pets At
The main advantage of trading using opposite BURLINGTON STORES and Pets At positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BURLINGTON STORES position performs unexpectedly, Pets At 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 Pets At will offset losses from the drop in Pets At's long position.BURLINGTON STORES vs. COSTCO WHOLESALE CDR | BURLINGTON STORES vs. BJs Wholesale Club | BURLINGTON STORES vs. Lippo Malls Indonesia | BURLINGTON STORES vs. ECHO INVESTMENT ZY |
Pets At vs. Tractor Supply | Pets At vs. Best Buy Co | Pets At vs. AUREA SA INH | Pets At vs. SIVERS SEMICONDUCTORS AB |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |