Correlation Between Lindblad Expeditions and 63253QAB0

Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and 63253QAB0 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 63253QAB0 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 NAB 4944 12 JAN 28, you can compare the effects of market volatilities on Lindblad Expeditions and 63253QAB0 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 63253QAB0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and 63253QAB0.

Diversification Opportunities for Lindblad Expeditions and 63253QAB0

-0.65

Correlation Coefficient

Lindblad Expeditions  63253QAB0

Excellent diversification

The 3 months correlation between Lindblad and 63253QAB0 is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and NAB 4944 12 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NAB 4944 12 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 63253QAB0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NAB 4944 12 has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and 63253QAB0 go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and 63253QAB0

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the 63253QAB0. In addition to that, Lindblad Expeditions is 2.32 times more volatile than NAB 4944 12 JAN 28. It trades about -0.06 of its total potential returns per unit of risk. NAB 4944 12 JAN 28 is currently generating about 0.04 per unit of volatility. If you would invest  10,122  in NAB 4944 12 JAN 28 on September 26, 2024 and sell it today you would earn a total of  66.00  from holding NAB 4944 12 JAN 28 or generate 0.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	66.67%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  NAB 4944 12 JAN 28

Lindblad Expeditions

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 9 (%) 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.

NAB 4944 12

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NAB 4944 12 JAN 28 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 63253QAB0 is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lindblad Expeditions and 63253QAB0

The main advantage of trading using opposite Lindblad Expeditions and 63253QAB0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, 63253QAB0 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 63253QAB0 will offset losses from the drop in 63253QAB0's long position.

The idea behind Lindblad Expeditions Holdings and NAB 4944 12 JAN 28 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..