Correlation Between Burlington Stores and Atkore International

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

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

Diversification Opportunities for Burlington Stores and Atkore International

0.7

Correlation Coefficient

Burlington Stores  Atkore International

Poor diversification

The 3 months correlation between Burlington and Atkore is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Burlington Stores and Atkore International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atkore International and Burlington Stores 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 Burlington Stores are associated (or correlated) with Atkore International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atkore International has no effect on the direction of Burlington Stores i.e., Burlington Stores and Atkore International go up and down completely randomly.

Pair Corralation between Burlington Stores and Atkore International

Given the investment horizon of 90 days Burlington Stores is expected to generate 1.06 times less return on investment than Atkore International. In addition to that, Burlington Stores is 1.29 times more volatile than Atkore International Group. It trades about 0.1 of its total potential returns per unit of risk. Atkore International Group is currently generating about 0.14 per unit of volatility. If you would invest  6,490  in Atkore International Group on May 6, 2025 and sell it today you would earn a total of  1,102  from holding Atkore International Group or generate 16.98% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Burlington Stores  vs.  Atkore International Group

Burlington Stores

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Burlington Stores are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite quite uncertain basic indicators, Burlington Stores disclosed solid returns over the last few months and may actually be approaching a breakup point.

Atkore International

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Atkore International Group are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward-looking signals, Atkore International reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Burlington Stores and Atkore International

The main advantage of trading using opposite Burlington Stores and Atkore International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Burlington Stores position performs unexpectedly, Atkore International 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 Atkore International will offset losses from the drop in Atkore International's long position.

The idea behind Burlington Stores and Atkore International Group 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.

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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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.