Correlation Between Globus Medical, and Burlington Stores,

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

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

Diversification Opportunities for Globus Medical, and Burlington Stores,

0.61

Correlation Coefficient

Globus Medical,  Burlington Stores,

Poor diversification

The 3 months correlation between Globus and Burlington is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical, and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, and Globus Medical, 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 Globus Medical, 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 Globus Medical, i.e., Globus Medical, and Burlington Stores, go up and down completely randomly.

Pair Corralation between Globus Medical, and Burlington Stores,

Assuming the 90 days trading horizon Globus Medical, is expected to under-perform the Burlington Stores,. In addition to that, Globus Medical, is 1.56 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 0.08 per unit of volatility. If you would invest  5,828  in Burlington Stores, on October 8, 2024 and sell it today you would earn a total of  88.00  from holding Burlington Stores, or generate 1.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	94.12%
Values	Daily Returns

Globus Medical,  vs.  Burlington Stores,

Globus Medical,

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Globus Medical, are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak primary indicators, Globus Medical, sustained solid returns over the last few months and may actually be approaching a breakup point.

Burlington Stores,

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Burlington Stores, are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Burlington Stores, sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Globus Medical, and Burlington Stores,

The main advantage of trading using opposite Globus Medical, and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Medical, 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.

The idea behind Globus Medical, and Burlington Stores, 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.