Correlation Between LDB Capital and Amazon CDR
Can any of the company-specific risk be diversified away by investing in both LDB Capital and Amazon CDR 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 LDB Capital and Amazon CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LDB Capital Corp and Amazon CDR, you can compare the effects of market volatilities on LDB Capital and Amazon CDR 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 LDB Capital with a short position of Amazon CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of LDB Capital and Amazon CDR.
Diversification Opportunities for LDB Capital and Amazon CDR
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LDB and Amazon is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding LDB Capital Corp and Amazon CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon CDR and LDB Capital 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 LDB Capital Corp are associated (or correlated) with Amazon CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon CDR has no effect on the direction of LDB Capital i.e., LDB Capital and Amazon CDR go up and down completely randomly.
Pair Corralation between LDB Capital and Amazon CDR
If you would invest 2,694 in Amazon CDR on October 11, 2025 and sell it today you would earn a total of 162.00 from holding Amazon CDR or generate 6.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LDB Capital Corp vs. Amazon CDR
Performance |
| Timeline |
| LDB Capital Corp |
| Amazon CDR |
LDB Capital and Amazon CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LDB Capital and Amazon CDR
The main advantage of trading using opposite LDB Capital and Amazon CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LDB Capital position performs unexpectedly, Amazon CDR 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 Amazon CDR will offset losses from the drop in Amazon CDR's long position.| LDB Capital vs. NorthWest Healthcare Properties | LDB Capital vs. UnitedHealth Group CDR | LDB Capital vs. Numinus Wellness | LDB Capital vs. Perseus Mining |
| Amazon CDR vs. Cogeco Communications | Amazon CDR vs. Queens Road Capital | Amazon CDR vs. Canadian Imperial Bank | Amazon CDR vs. Gfl Environmental Holdings |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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