Correlation Between Burford Capital and American Fds

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Burford Capital and American Fds 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 American Fds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Burford Capital and American Fds 2015, you can compare the effects of market volatilities on Burford Capital and American Fds 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 American Fds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Burford Capital and American Fds.

Diversification Opportunities for Burford Capital and American Fds

-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Burford and American is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Burford Capital and American Fds 2015 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Fds 2015 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 American Fds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Fds 2015 has no effect on the direction of Burford Capital i.e., Burford Capital and American Fds go up and down completely randomly.

Pair Corralation between Burford Capital and American Fds

Considering the 90-day investment horizon Burford Capital is expected to generate 4.79 times more return on investment than American Fds. However, Burford Capital is 4.79 times more volatile than American Fds 2015. It trades about 0.1 of its potential returns per unit of risk. American Fds 2015 is currently generating about 0.37 per unit of risk. If you would invest  1,017  in Burford Capital on May 13, 2022 and sell it today you would earn a total of  48.00  from holding Burford Capital or generate 4.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

Burford Capital  vs.  American Fds 2015

 Performance (%) 
       Timeline  
Burford Capital 
Burford Performance
18 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Burford Capital are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Burford Capital reported solid returns over the last few months and may actually be approaching a breakup point.

Burford Price Channel

American Fds 2015 
American Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in American Fds 2015 are ranked lower than 1 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, American Fds is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

American Price Channel

Burford Capital and American Fds Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Burford Capital and American Fds

The main advantage of trading using opposite Burford Capital and American Fds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burford Capital position performs unexpectedly, American Fds 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 American Fds will offset losses from the drop in American Fds' long position.
The idea behind Burford Capital and American Fds 2015 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.

American Fds 2015

Pair trading matchups for American Fds

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.

Other Complementary Tools

Piotroski F Score
Get Piotroski F Score based on binary analysis strategy of nine different fundamentals
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Go
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Bond Directory
Find actively traded corporate debentures issued by US companies
Go
Equity Valuation
Check real value of public entities based on technical and fundamental data
Go
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go