Correlation Between Burlington Stores and HELIOS TECHS
Can any of the company-specific risk be diversified away by investing in both Burlington Stores and HELIOS TECHS 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 HELIOS TECHS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burlington Stores and HELIOS TECHS INC, you can compare the effects of market volatilities on Burlington Stores and HELIOS TECHS 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 HELIOS TECHS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and HELIOS TECHS.
Diversification Opportunities for Burlington Stores and HELIOS TECHS
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Burlington and HELIOS is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and HELIOS TECHS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HELIOS TECHS INC 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 HELIOS TECHS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HELIOS TECHS INC has no effect on the direction of Burlington Stores i.e., Burlington Stores and HELIOS TECHS go up and down completely randomly.
Pair Corralation between Burlington Stores and HELIOS TECHS
Assuming the 90 days trading horizon Burlington Stores is expected to generate 1.93 times less return on investment than HELIOS TECHS. But when comparing it to its historical volatility, Burlington Stores is 1.12 times less risky than HELIOS TECHS. It trades about 0.12 of its potential returns per unit of risk. HELIOS TECHS INC is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 2,174 in HELIOS TECHS INC on April 21, 2025 and sell it today you would earn a total of 966.00 from holding HELIOS TECHS INC or generate 44.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Burlington Stores vs. HELIOS TECHS INC
Performance |
Timeline |
Burlington Stores |
HELIOS TECHS INC |
Burlington Stores and HELIOS TECHS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Burlington Stores and HELIOS TECHS
The main advantage of trading using opposite Burlington Stores and HELIOS TECHS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, HELIOS TECHS 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 HELIOS TECHS will offset losses from the drop in HELIOS TECHS's long position.Burlington Stores vs. HANOVER INSURANCE | Burlington Stores vs. Singapore Reinsurance | Burlington Stores vs. UNIQA INSURANCE GR | Burlington Stores vs. Taiwan Semiconductor Manufacturing |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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