Correlation Between Lindblad Expeditions and Anonymous Intelligence

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

Diversification Opportunities for Lindblad Expeditions and Anonymous Intelligence

0.3

Correlation Coefficient

Lindblad Expeditions  Anonymous Intelligence

Weak diversification

The 3 months correlation between Lindblad and Anonymous is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Anonymous Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anonymous Intelligence 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 Anonymous Intelligence. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anonymous Intelligence has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Anonymous Intelligence go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Anonymous Intelligence

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Anonymous Intelligence. But the stock apears to be less risky and, when comparing its historical volatility, Lindblad Expeditions Holdings is 3.79 times less risky than Anonymous Intelligence. The stock trades about -0.15 of its potential returns per unit of risk. The Anonymous Intelligence is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  9.60  in Anonymous Intelligence on September 15, 2024 and sell it today you would lose (0.25) from holding Anonymous Intelligence or give up 2.6% of portfolio value over 90 days.

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

Lindblad Expeditions Holdings  vs.  Anonymous Intelligence

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. 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.

Anonymous Intelligence

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Anonymous Intelligence are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Anonymous Intelligence reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindblad Expeditions and Anonymous Intelligence

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

The idea behind Lindblad Expeditions Holdings and Anonymous Intelligence 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.