Correlation Between Burlington Stores, and Fortinet

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

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

Diversification Opportunities for Burlington Stores, and Fortinet

0.0

Correlation Coefficient

Burlington Stores,  Fortinet

Pay attention - limited upside

The 3 months correlation between Burlington and Fortinet is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores, and Fortinet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fortinet 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 Fortinet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fortinet has no effect on the direction of Burlington Stores, i.e., Burlington Stores, and Fortinet go up and down completely randomly.

Pair Corralation between Burlington Stores, and Fortinet

If you would invest  0.00  in Fortinet on October 4, 2024 and sell it today you would earn a total of  0.00  from holding Fortinet or generate 0.0% return on investment over 90 days.

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

Burlington Stores,  vs.  Fortinet

Burlington Stores,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Burlington Stores, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Burlington Stores, is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Fortinet

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Fortinet has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Fortinet is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Burlington Stores, and Fortinet

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

The idea behind Burlington Stores, and Fortinet 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.