Correlation Between JD Sports and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both JD Sports and Lindblad Expeditions 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 JD Sports and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Sports Fashion and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on JD Sports and Lindblad Expeditions 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 JD Sports with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Sports and Lindblad Expeditions.
Diversification Opportunities for JD Sports and Lindblad Expeditions
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between JDDSF and Lindblad is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding JD Sports Fashion and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and JD Sports 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 JD Sports Fashion are associated (or correlated) with Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of JD Sports i.e., JD Sports and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between JD Sports and Lindblad Expeditions
Assuming the 90 days horizon JD Sports is expected to generate 6.76 times less return on investment than Lindblad Expeditions. But when comparing it to its historical volatility, JD Sports Fashion is 1.75 times less risky than Lindblad Expeditions. It trades about 0.03 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 774.00 in Lindblad Expeditions Holdings on August 29, 2024 and sell it today you would earn a total of 486.00 from holding Lindblad Expeditions Holdings or generate 62.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Sports Fashion vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| JD Sports Fashion |
| Lindblad Expeditions |
JD Sports and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Sports and Lindblad Expeditions
The main advantage of trading using opposite JD Sports and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Sports position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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