Correlation Between Grupo Carso and BURLINGTON STORES
Can any of the company-specific risk be diversified away by investing in both Grupo Carso and BURLINGTON STORES 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 Grupo Carso and BURLINGTON STORES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grupo Carso SAB and BURLINGTON STORES, you can compare the effects of market volatilities on Grupo Carso and BURLINGTON STORES 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 Grupo Carso with a short position of BURLINGTON STORES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and BURLINGTON STORES.
Diversification Opportunities for Grupo Carso and BURLINGTON STORES
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and BURLINGTON is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and BURLINGTON STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BURLINGTON STORES and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with BURLINGTON STORES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BURLINGTON STORES has no effect on the direction of Grupo Carso i.e., Grupo Carso and BURLINGTON STORES go up and down completely randomly.
Pair Corralation between Grupo Carso and BURLINGTON STORES
Assuming the 90 days horizon Grupo Carso SAB is expected to under-perform the BURLINGTON STORES. In addition to that, Grupo Carso is 1.27 times more volatile than BURLINGTON STORES. It trades about -0.02 of its total potential returns per unit of risk. BURLINGTON STORES is currently generating about 0.09 per unit of volatility. If you would invest 24,800 in BURLINGTON STORES on September 26, 2024 and sell it today you would earn a total of 2,600 from holding BURLINGTON STORES or generate 10.48% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Grupo Carso SAB vs. BURLINGTON STORES
Performance |
Timeline |
Grupo Carso SAB |
BURLINGTON STORES |
Grupo Carso and BURLINGTON STORES Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grupo Carso and BURLINGTON STORES
The main advantage of trading using opposite Grupo Carso and BURLINGTON STORES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, BURLINGTON STORES 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 BURLINGTON STORES will offset losses from the drop in BURLINGTON STORES's long position.Grupo Carso vs. Diamyd Medical AB | Grupo Carso vs. CompuGroup Medical SE | Grupo Carso vs. AWILCO DRILLING PLC | Grupo Carso vs. SCANDMEDICAL SOLDK 040 |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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