Correlation Between LandBridge Company and Winmark
Can any of the company-specific risk be diversified away by investing in both LandBridge Company and Winmark 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 LandBridge Company and Winmark into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LandBridge Company LLC and Winmark, you can compare the effects of market volatilities on LandBridge Company and Winmark 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 LandBridge Company with a short position of Winmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of LandBridge Company and Winmark.
Diversification Opportunities for LandBridge Company and Winmark
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between LandBridge and Winmark is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding LandBridge Company LLC and Winmark in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winmark and LandBridge Company 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 LandBridge Company LLC are associated (or correlated) with Winmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winmark has no effect on the direction of LandBridge Company i.e., LandBridge Company and Winmark go up and down completely randomly.
Pair Corralation between LandBridge Company and Winmark
Allowing for the 90-day total investment horizon LandBridge Company LLC is expected to generate 2.3 times more return on investment than Winmark. However, LandBridge Company is 2.3 times more volatile than Winmark. It trades about 0.27 of its potential returns per unit of risk. Winmark is currently generating about 0.0 per unit of risk. If you would invest 2,315 in LandBridge Company LLC on August 27, 2024 and sell it today you would earn a total of 5,431 from holding LandBridge Company LLC or generate 234.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 42.34% |
| Values | Daily Returns |
LandBridge Company LLC vs. Winmark
Performance |
| Timeline |
| LandBridge Company |
| Winmark |
LandBridge Company and Winmark Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LandBridge Company and Winmark
The main advantage of trading using opposite LandBridge Company and Winmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LandBridge Company position performs unexpectedly, Winmark 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 Winmark will offset losses from the drop in Winmark's long position.| LandBridge Company vs. Kinsale Capital Group | LandBridge Company vs. Assurant | LandBridge Company vs. Trupanion | LandBridge Company vs. Valneva SE ADR |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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