Correlation Between Lindblad Expeditions and JD Sports
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and JD Sports 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 JD Sports 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 JD Sports Fashion, you can compare the effects of market volatilities on Lindblad Expeditions and JD Sports 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 JD Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and JD Sports.
Diversification Opportunities for Lindblad Expeditions and JD Sports
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lindblad and JDSPY is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and JD Sports Fashion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD Sports Fashion 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 JD Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD Sports Fashion has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and JD Sports go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and JD Sports
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.07 times more return on investment than JD Sports. However, Lindblad Expeditions is 1.07 times more volatile than JD Sports Fashion. It trades about 0.28 of its potential returns per unit of risk. JD Sports Fashion is currently generating about -0.16 per unit of risk. If you would invest 945.00 in Lindblad Expeditions Holdings on September 1, 2024 and sell it today you would earn a total of 381.00 from holding Lindblad Expeditions Holdings or generate 40.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. JD Sports Fashion
Performance |
| Timeline |
| Lindblad Expeditions |
| JD Sports Fashion |
Lindblad Expeditions and JD Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and JD Sports
The main advantage of trading using opposite Lindblad Expeditions and JD Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, JD Sports 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 JD Sports will offset losses from the drop in JD Sports' long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| JD Sports vs. Burlington Stores | JD Sports vs. Childrens Place | JD Sports vs. Buckle Inc | JD Sports vs. Shoe Carnival |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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