Correlation Between Lindblad Expeditions and AI Unlimited

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

Diversification Opportunities for Lindblad Expeditions and AI Unlimited

-0.4

Correlation Coefficient

Lindblad Expeditions  AI Unlimited

Very good diversification

The 3 months correlation between Lindblad and AIUG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and AI Unlimited Group, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AI Unlimited Group, 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 AI Unlimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AI Unlimited Group, has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and AI Unlimited go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and AI Unlimited

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 0.46 times more return on investment than AI Unlimited. However, Lindblad Expeditions Holdings is 2.19 times less risky than AI Unlimited. It trades about -0.04 of its potential returns per unit of risk. AI Unlimited Group, is currently generating about -0.03 per unit of risk. If you would invest  1,325  in Lindblad Expeditions Holdings on September 20, 2024 and sell it today you would lose (52.00) from holding Lindblad Expeditions Holdings or give up 3.92% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  AI Unlimited Group,

Lindblad Expeditions

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 7 (%) 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.

AI Unlimited Group,

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in AI Unlimited Group, are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, AI Unlimited reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindblad Expeditions and AI Unlimited

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

The idea behind Lindblad Expeditions Holdings and AI Unlimited Group, 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.