Correlation Between Burford Capital and Assetmark Financial

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Can any of the company-specific risk be diversified away by investing in both Burford Capital and Assetmark Financial 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 Burford Capital and Assetmark Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burford Capital and Assetmark Financial Holdings, you can compare the effects of market volatilities on Burford Capital and Assetmark Financial 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 Burford Capital with a short position of Assetmark Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burford Capital and Assetmark Financial.

Diversification Opportunities for Burford Capital and Assetmark Financial

0.05
  Correlation Coefficient

Significant diversification

The 3 months correlation between Burford and Assetmark is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Burford Capital and Assetmark Financial Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assetmark Financial and Burford Capital 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 Burford Capital are associated (or correlated) with Assetmark Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assetmark Financial has no effect on the direction of Burford Capital i.e., Burford Capital and Assetmark Financial go up and down completely randomly.

Pair Corralation between Burford Capital and Assetmark Financial

Considering the 90-day investment horizon Burford Capital is expected to under-perform the Assetmark Financial. In addition to that, Burford Capital is 1.13 times more volatile than Assetmark Financial Holdings. It trades about -0.73 of its total potential returns per unit of risk. Assetmark Financial Holdings is currently generating about -0.15 per unit of volatility. If you would invest  1,962  in Assetmark Financial Holdings on June 30, 2022 and sell it today you would lose (98.00)  from holding Assetmark Financial Holdings or give up 4.99% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

Burford Capital  vs.  Assetmark Financial Holdings

 Performance (%) 
       Timeline  
Burford Capital 
Burford Performance
0 of 100
Over the last 90 days Burford Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with sluggish performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in October 2022. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Burford Price Channel

Assetmark Financial 
Assetmark Performance
0 of 100
Over the last 90 days Assetmark Financial Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong primary indicators, Assetmark Financial is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Assetmark Price Channel

Burford Capital and Assetmark Financial Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Burford Capital and Assetmark Financial

The main advantage of trading using opposite Burford Capital and Assetmark Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burford Capital position performs unexpectedly, Assetmark Financial 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 Assetmark Financial will offset losses from the drop in Assetmark Financial's long position.
Burford Capital vs. Apple Inc
Burford Capital vs. Kibush Capital Corp
The idea behind Burford Capital and Assetmark Financial Holdings 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.
Assetmark Financial vs. Kibush Capital Corp
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 Probability Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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