Correlation Between Lindblad Expeditions and Lottery, Warrants

Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Lottery, Warrants 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 Lottery, Warrants 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 Lottery, Warrants, you can compare the effects of market volatilities on Lindblad Expeditions and Lottery, Warrants 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 Lottery, Warrants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Lottery, Warrants.

Diversification Opportunities for Lindblad Expeditions and Lottery, Warrants

-0.51

Correlation Coefficient

Lindblad Expeditions  Lottery, Warrants

Excellent diversification

The 3 months correlation between Lindblad and Lottery, is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Lottery, Warrants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lottery, Warrants 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 Lottery, Warrants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lottery, Warrants has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Lottery, Warrants go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Lottery, Warrants

Given the investment horizon of 90 days Lindblad Expeditions is expected to generate 6.17 times less return on investment than Lottery, Warrants. But when comparing it to its historical volatility, Lindblad Expeditions Holdings is 3.49 times less risky than Lottery, Warrants. It trades about 0.03 of its potential returns per unit of risk. Lottery, Warrants is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1.72  in Lottery, Warrants on September 30, 2024 and sell it today you would lose (0.58) from holding Lottery, Warrants or give up 33.72% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	97.99%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Lottery, Warrants

Lindblad Expeditions

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Lindblad Expeditions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Lottery, Warrants

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lottery, Warrants are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Lottery, Warrants showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindblad Expeditions and Lottery, Warrants

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

The idea behind Lindblad Expeditions Holdings and Lottery, Warrants 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.