Correlation Between Cumulus Media and Lindblad Expeditions

Can any of the company-specific risk be diversified away by investing in both Cumulus Media and Lindblad Expeditions 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 Cumulus Media and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cumulus Media Class and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Cumulus Media and Lindblad Expeditions 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 Cumulus Media with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cumulus Media and Lindblad Expeditions.

Diversification Opportunities for Cumulus Media and Lindblad Expeditions

-0.84

Correlation Coefficient

Cumulus Media  Lindblad Expeditions

Pay attention - limited upside

The 3 months correlation between Cumulus and Lindblad is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cumulus Media Class and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Cumulus Media 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 Cumulus Media Class are associated (or correlated) with Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of Cumulus Media i.e., Cumulus Media and Lindblad Expeditions go up and down completely randomly.

Pair Corralation between Cumulus Media and Lindblad Expeditions

Given the investment horizon of 90 days Cumulus Media Class is expected to under-perform the Lindblad Expeditions. In addition to that, Cumulus Media is 1.06 times more volatile than Lindblad Expeditions Holdings. It trades about -0.22 of its total potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.16 per unit of volatility. If you would invest  936.00  in Lindblad Expeditions Holdings on September 5, 2024 and sell it today you would earn a total of  433.00  from holding Lindblad Expeditions Holdings or generate 46.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Cumulus Media Class  vs.  Lindblad Expeditions Holdings

Cumulus Media Class

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cumulus Media Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Lindblad Expeditions

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Lindblad Expeditions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cumulus Media and Lindblad Expeditions

The main advantage of trading using opposite Cumulus Media and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cumulus Media position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.

The idea behind Cumulus Media Class and Lindblad Expeditions Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.