Correlation Between Lindblad Expeditions and ON THE

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

Diversification Opportunities for Lindblad Expeditions and ON THE

0.54

Correlation Coefficient

Lindblad Expeditions  ON THE

Very weak diversification

The 3 months correlation between Lindblad and 9BP is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and ON THE BEACH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ON THE BEACH 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 ON THE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ON THE BEACH has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and ON THE go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and ON THE

Assuming the 90 days horizon Lindblad Expeditions Holdings is expected to under-perform the ON THE. But the stock apears to be less risky and, when comparing its historical volatility, Lindblad Expeditions Holdings is 1.72 times less risky than ON THE. The stock trades about -0.07 of its potential returns per unit of risk. The ON THE BEACH is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest  192.00  in ON THE BEACH on September 23, 2024 and sell it today you would earn a total of  98.00  from holding ON THE BEACH or generate 51.04% return on investment over 90 days.

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

Lindblad Expeditions Holdings  vs.  ON THE BEACH

Lindblad Expeditions

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Lindblad Expeditions reported solid returns over the last few months and may actually be approaching a breakup point.

ON THE BEACH

Risk-Adjusted Performance

19 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ON THE BEACH are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ON THE reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindblad Expeditions and ON THE

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

The idea behind Lindblad Expeditions Holdings and ON THE BEACH 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.