Correlation Between Lindblad Expeditions and TRAVEL +

Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and TRAVEL + 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 TRAVEL + 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 TRAVEL LEISURE DL 01, you can compare the effects of market volatilities on Lindblad Expeditions and TRAVEL + 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 TRAVEL +. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and TRAVEL +.

Diversification Opportunities for Lindblad Expeditions and TRAVEL +

0.79

Correlation Coefficient

Lindblad Expeditions  TRAVEL +

Poor diversification

The 3 months correlation between Lindblad and TRAVEL is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and TRAVEL LEISURE DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVEL LEISURE DL 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 TRAVEL +. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVEL LEISURE DL has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and TRAVEL + go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and TRAVEL +

Assuming the 90 days horizon Lindblad Expeditions Holdings is expected to under-perform the TRAVEL +. In addition to that, Lindblad Expeditions is 1.64 times more volatile than TRAVEL LEISURE DL 01. It trades about -0.07 of its total potential returns per unit of risk. TRAVEL LEISURE DL 01 is currently generating about -0.05 per unit of volatility. If you would invest  4,762  in TRAVEL LEISURE DL 01 on December 29, 2024 and sell it today you would lose (322.00) from holding TRAVEL LEISURE DL 01 or give up 6.76% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  TRAVEL LEISURE DL 01

Lindblad Expeditions

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lindblad Expeditions Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

TRAVEL LEISURE DL

Risk-Adjusted Performance

Very Weak

Over the last 90 days TRAVEL LEISURE DL 01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, TRAVEL + is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lindblad Expeditions and TRAVEL +

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

The idea behind Lindblad Expeditions Holdings and TRAVEL LEISURE DL 01 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.