Correlation Between Lindblad Expeditions and Dominos Pizza
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Dominos Pizza 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 Lindblad Expeditions and Dominos Pizza into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindblad Expeditions Holdings and Dominos Pizza, you can compare the effects of market volatilities on Lindblad Expeditions and Dominos Pizza 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 Lindblad Expeditions with a short position of Dominos Pizza. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Dominos Pizza.
Diversification Opportunities for Lindblad Expeditions and Dominos Pizza
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lindblad and Dominos is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Dominos Pizza in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dominos Pizza and Lindblad Expeditions 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 Lindblad Expeditions Holdings are associated (or correlated) with Dominos Pizza. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dominos Pizza has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Dominos Pizza go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Dominos Pizza
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.26 times more return on investment than Dominos Pizza. However, Lindblad Expeditions is 2.26 times more volatile than Dominos Pizza. It trades about 0.04 of its potential returns per unit of risk. Dominos Pizza is currently generating about 0.08 per unit of risk. If you would invest 995.00 in Lindblad Expeditions Holdings on September 1, 2024 and sell it today you would earn a total of 331.00 from holding Lindblad Expeditions Holdings or generate 33.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Dominos Pizza
Performance |
| Timeline |
| Lindblad Expeditions |
| Dominos Pizza |
Lindblad Expeditions and Dominos Pizza Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Dominos Pizza
The main advantage of trading using opposite Lindblad Expeditions and Dominos Pizza positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Dominos Pizza 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 Dominos Pizza will offset losses from the drop in Dominos Pizza's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Dominos Pizza vs. Yum Brands | Dominos Pizza vs. The Wendys Co | Dominos Pizza vs. Wingstop | Dominos Pizza vs. Shake Shack |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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