Correlation Between Burford Capital and OPTIMUM FIXED

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Burford Capital and OPTIMUM FIXED 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 OPTIMUM FIXED into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burford Capital and OPTIMUM FIXED INCOME, you can compare the effects of market volatilities on Burford Capital and OPTIMUM FIXED 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 OPTIMUM FIXED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burford Capital and OPTIMUM FIXED.

Diversification Opportunities for Burford Capital and OPTIMUM FIXED

0.54
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Burford and OPTIMUM is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Burford Capital and OPTIMUM FIXED INCOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPTIMUM FIXED INCOME 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 OPTIMUM FIXED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPTIMUM FIXED INCOME has no effect on the direction of Burford Capital i.e., Burford Capital and OPTIMUM FIXED go up and down completely randomly.

Pair Corralation between Burford Capital and OPTIMUM FIXED

Considering the 90-day investment horizon Burford Capital is expected to generate 4.51 times more return on investment than OPTIMUM FIXED. However, Burford Capital is 4.51 times more volatile than OPTIMUM FIXED INCOME. It trades about 0.27 of its potential returns per unit of risk. OPTIMUM FIXED INCOME is currently generating about 0.49 per unit of risk. If you would invest  790.00  in Burford Capital on September 4, 2022 and sell it today you would earn a total of  104.00  from holding Burford Capital or generate 13.16% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.45%
ValuesDaily Returns

Burford Capital  vs.  OPTIMUM FIXED INCOME

 Performance (%) 
       Timeline  
Burford Capital 
Burford Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Burford Capital are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Even with relatively invariable basic indicators, Burford Capital is not utilizing all of its potentials. The newest stock price agitation, may contribute to short-term losses for the retail investors.

Burford Price Channel

OPTIMUM FIXED INCOME 
OPTIMUM Performance
0 of 100
Over the last 90 days OPTIMUM FIXED INCOME has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, OPTIMUM FIXED is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

OPTIMUM Price Channel

Burford Capital and OPTIMUM FIXED Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Burford Capital and OPTIMUM FIXED

The main advantage of trading using opposite Burford Capital and OPTIMUM FIXED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burford Capital position performs unexpectedly, OPTIMUM FIXED 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 OPTIMUM FIXED will offset losses from the drop in OPTIMUM FIXED's long position.
Burford Capital vs. Central Securities
Burford Capital vs. CI Financial Corp
Burford Capital vs. Ellsworth Convertible Growth
Burford Capital vs. Federated Investors
The idea behind Burford Capital and OPTIMUM FIXED INCOME 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.
OPTIMUM FIXED vs. Caterpillar
OPTIMUM FIXED vs. VANGUARD SMALL-CAP GROWTH
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go