Correlation Between SoftBank Group and Burford Capital
Can any of the company-specific risk be diversified away by investing in both SoftBank Group and Burford Capital 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 SoftBank Group and Burford Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftBank Group Corp and Burford Capital Limited, you can compare the effects of market volatilities on SoftBank Group and Burford Capital 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 SoftBank Group with a short position of Burford Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and Burford Capital.
Diversification Opportunities for SoftBank Group and Burford Capital
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SoftBank and Burford is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and Burford Capital Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Burford Capital and SoftBank Group 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 SoftBank Group Corp are associated (or correlated) with Burford Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Burford Capital has no effect on the direction of SoftBank Group i.e., SoftBank Group and Burford Capital go up and down completely randomly.
Pair Corralation between SoftBank Group and Burford Capital
Assuming the 90 days trading horizon SoftBank Group Corp is expected to generate 1.66 times more return on investment than Burford Capital. However, SoftBank Group is 1.66 times more volatile than Burford Capital Limited. It trades about 0.45 of its potential returns per unit of risk. Burford Capital Limited is currently generating about -0.23 per unit of risk. If you would invest 2,080,000 in SoftBank Group Corp on August 5, 2025 and sell it today you would earn a total of 626,500 from holding SoftBank Group Corp or generate 30.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 61.9% |
| Values | Daily Returns |
SoftBank Group Corp vs. Burford Capital Limited
Performance |
| Timeline |
| SoftBank Group Corp |
| Burford Capital |
SoftBank Group and Burford Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and Burford Capital
The main advantage of trading using opposite SoftBank Group and Burford Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group position performs unexpectedly, Burford Capital 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 Burford Capital will offset losses from the drop in Burford Capital's long position.| SoftBank Group vs. Resolute Mining Limited | SoftBank Group vs. Home Depot | SoftBank Group vs. Greenroc Mining PLC | SoftBank Group vs. Coeur Mining |
| Burford Capital vs. Accsys Technologies PLC | Burford Capital vs. Naturhouse Health SA | Burford Capital vs. HCA Healthcare | Burford Capital vs. Omega Healthcare Investors |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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