Correlation Between Lands End and Dicks Sporting
Can any of the company-specific risk be diversified away by investing in both Lands End and Dicks Sporting 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 Lands End and Dicks Sporting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lands End and Dicks Sporting Goods, you can compare the effects of market volatilities on Lands End and Dicks Sporting 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 Lands End with a short position of Dicks Sporting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lands End and Dicks Sporting.
Diversification Opportunities for Lands End and Dicks Sporting
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lands and Dicks is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Lands End and Dicks Sporting Goods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dicks Sporting Goods and Lands End 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 Lands End are associated (or correlated) with Dicks Sporting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dicks Sporting Goods has no effect on the direction of Lands End i.e., Lands End and Dicks Sporting go up and down completely randomly.
Pair Corralation between Lands End and Dicks Sporting
Allowing for the 90-day total investment horizon Lands End is expected to generate 2.87 times more return on investment than Dicks Sporting. However, Lands End is 2.87 times more volatile than Dicks Sporting Goods. It trades about 0.31 of its potential returns per unit of risk. Dicks Sporting Goods is currently generating about -0.27 per unit of risk. If you would invest 1,004 in Lands End on January 27, 2024 and sell it today you would earn a total of 300.00 from holding Lands End or generate 29.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Lands End vs. Dicks Sporting Goods
Performance |
| Timeline |
| Lands End |
| Dicks Sporting Goods |
Lands End and Dicks Sporting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lands End and Dicks Sporting
The main advantage of trading using opposite Lands End and Dicks Sporting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lands End position performs unexpectedly, Dicks Sporting 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 Dicks Sporting will offset losses from the drop in Dicks Sporting's long position.| Lands End vs. Tillys Inc | Lands End vs. Zumiez Inc | Lands End vs. Citi Trends | Lands End vs. Cato Corporation |
| Dicks Sporting vs. Williams Sonoma | Dicks Sporting vs. AutoZone | Dicks Sporting vs. Best Buy Co | Dicks Sporting vs. RH |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |