Correlation Between MAHLE Metal and Burlington Stores,

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

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

Diversification Opportunities for MAHLE Metal and Burlington Stores,

-0.69

Correlation Coefficient

MAHLE Metal  Burlington Stores,

Excellent diversification

The 3 months correlation between MAHLE and Burlington is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding MAHLE Metal Leve and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, and MAHLE Metal 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 MAHLE Metal Leve 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 MAHLE Metal i.e., MAHLE Metal and Burlington Stores, go up and down completely randomly.

Pair Corralation between MAHLE Metal and Burlington Stores,

Assuming the 90 days trading horizon MAHLE Metal is expected to generate 1.69 times less return on investment than Burlington Stores,. But when comparing it to its historical volatility, MAHLE Metal Leve is 1.24 times less risky than Burlington Stores,. It trades about 0.03 of its potential returns per unit of risk. Burlington Stores, is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  4,000  in Burlington Stores, on October 10, 2024 and sell it today you would earn a total of  1,926  from holding Burlington Stores, or generate 48.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	84.68%
Values	Daily Returns

MAHLE Metal Leve  vs.  Burlington Stores,

MAHLE Metal Leve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days MAHLE Metal Leve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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 MAHLE Metal and Burlington Stores,

The main advantage of trading using opposite MAHLE Metal and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAHLE Metal 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 MAHLE Metal Leve 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.