Correlation Between Burlington Stores and MQGAU

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

By analyzing existing cross correlation between Burlington Stores and MQGAU 5376057 23 SEP 27, you can compare the effects of market volatilities on Burlington Stores and MQGAU 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 MQGAU. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burlington Stores and MQGAU.

Diversification Opportunities for Burlington Stores and MQGAU

0.46

Correlation Coefficient

Burlington Stores  MQGAU

Very weak diversification

The 3 months correlation between Burlington and MQGAU is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and MQGAU 5376057 23 SEP 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MQGAU 5376057 23 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 MQGAU. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MQGAU 5376057 23 has no effect on the direction of Burlington Stores i.e., Burlington Stores and MQGAU go up and down completely randomly.

Pair Corralation between Burlington Stores and MQGAU

Given the investment horizon of 90 days Burlington Stores is expected to under-perform the MQGAU. In addition to that, Burlington Stores is 31.96 times more volatile than MQGAU 5376057 23 SEP 27. It trades about -0.04 of its total potential returns per unit of risk. MQGAU 5376057 23 SEP 27 is currently generating about 0.11 per unit of volatility. If you would invest  10,046  in MQGAU 5376057 23 SEP 27 on October 6, 2024 and sell it today you would earn a total of  3.00  from holding MQGAU 5376057 23 SEP 27 or generate 0.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	30.0%
Values	Daily Returns

Burlington Stores  vs.  MQGAU 5376057 23 SEP 27

Burlington Stores

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Burlington Stores are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite quite weak basic indicators, Burlington Stores disclosed solid returns over the last few months and may actually be approaching a breakup point.

MQGAU 5376057 23

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in MQGAU 5376057 23 SEP 27 are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, MQGAU is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Burlington Stores and MQGAU

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

The idea behind Burlington Stores and MQGAU 5376057 23 SEP 27 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.