Correlation Between Burlington Stores and LINMON MEDIA

Can any of the company-specific risk be diversified away by investing in both Burlington Stores and LINMON MEDIA 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 LINMON MEDIA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Burlington Stores and LINMON MEDIA LTD, you can compare the effects of market volatilities on Burlington Stores and LINMON MEDIA 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 LINMON MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and LINMON MEDIA.

Diversification Opportunities for Burlington Stores and LINMON MEDIA

-0.11

Correlation Coefficient

Burlington Stores  LINMON MEDIA

Good diversification

The 3 months correlation between Burlington and LINMON is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and LINMON MEDIA LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINMON MEDIA LTD 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 LINMON MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINMON MEDIA LTD has no effect on the direction of Burlington Stores i.e., Burlington Stores and LINMON MEDIA go up and down completely randomly.

Pair Corralation between Burlington Stores and LINMON MEDIA

Assuming the 90 days trading horizon Burlington Stores is expected to generate 1.93 times less return on investment than LINMON MEDIA. But when comparing it to its historical volatility, Burlington Stores is 2.06 times less risky than LINMON MEDIA. It trades about 0.12 of its potential returns per unit of risk. LINMON MEDIA LTD is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  28.00  in LINMON MEDIA LTD on April 21, 2025 and sell it today you would earn a total of  10.00  from holding LINMON MEDIA LTD or generate 35.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Burlington Stores  vs.  LINMON MEDIA LTD

Burlington Stores

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Burlington Stores are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Burlington Stores unveiled solid returns over the last few months and may actually be approaching a breakup point.

LINMON MEDIA LTD

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in LINMON MEDIA LTD are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, LINMON MEDIA reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Burlington Stores and LINMON MEDIA

The main advantage of trading using opposite Burlington Stores and LINMON MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, LINMON MEDIA 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 LINMON MEDIA will offset losses from the drop in LINMON MEDIA's long position.

The idea behind Burlington Stores and LINMON MEDIA LTD pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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.