Correlation Between Lindblad Expeditions and TG Venture

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

Diversification Opportunities for Lindblad Expeditions and TG Venture

0.03

Correlation Coefficient

Lindblad Expeditions  TG Venture

Significant diversification

The 3 months correlation between Lindblad and TGVCU is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and TG Venture Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TG Venture Acquisition 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 TG Venture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TG Venture Acquisition has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and TG Venture go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and TG Venture

If you would invest  1,062  in Lindblad Expeditions Holdings on September 18, 2024 and sell it today you would earn a total of  122.00  from holding Lindblad Expeditions Holdings or generate 11.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	1.59%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  TG Venture Acquisition

Lindblad Expeditions

Risk-Adjusted Performance

4 of 100

Modest

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

TG Venture Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TG Venture Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental indicators, TG Venture is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Lindblad Expeditions and TG Venture

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

The idea behind Lindblad Expeditions Holdings and TG Venture Acquisition 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.