Correlation Between 360 Finance and Burlington Stores,

Can any of the company-specific risk be diversified away by investing in both 360 Finance 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 360 Finance and Burlington Stores, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between 360 Finance and Burlington Stores,, you can compare the effects of market volatilities on 360 Finance 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 360 Finance with a short position of Burlington Stores,. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Finance and Burlington Stores,.

Diversification Opportunities for 360 Finance and Burlington Stores,

0.67

Correlation Coefficient

360 Finance  Burlington Stores,

Poor diversification

The 3 months correlation between 360 and Burlington is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding 360 Finance and Burlington Stores, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burlington Stores, and 360 Finance 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 360 Finance 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 360 Finance i.e., 360 Finance and Burlington Stores, go up and down completely randomly.

Pair Corralation between 360 Finance and Burlington Stores,

Given the investment horizon of 90 days 360 Finance is expected to generate 1.59 times less return on investment than Burlington Stores,. In addition to that, 360 Finance is 1.24 times more volatile than Burlington Stores,. It trades about 0.12 of its total potential returns per unit of risk. Burlington Stores, is currently generating about 0.23 per unit of volatility. If you would invest  4,725  in Burlington Stores, on October 6, 2024 and sell it today you would earn a total of  1,191  from holding Burlington Stores, or generate 25.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	92.68%
Values	Daily Returns

360 Finance  vs.  Burlington Stores,

360 Finance

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in 360 Finance are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain forward indicators, 360 Finance displayed 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 360 Finance and Burlington Stores,

The main advantage of trading using opposite 360 Finance and Burlington Stores, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Finance 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 360 Finance 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.