Correlation Between Lindblad Expeditions and Academy Sports

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

Diversification Opportunities for Lindblad Expeditions and Academy Sports

0.65

Correlation Coefficient

Lindblad Expeditions  Academy Sports

Poor diversification

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

Pair Corralation between Lindblad Expeditions and Academy Sports

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.38 times more return on investment than Academy Sports. However, Lindblad Expeditions is 1.38 times more volatile than Academy Sports Outdoors. It trades about -0.06 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about -0.11 per unit of risk. If you would invest  1,204  in Lindblad Expeditions Holdings on December 29, 2024 and sell it today you would lose (177.00) from holding Lindblad Expeditions Holdings or give up 14.7% of portfolio value over 90 days.

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

Lindblad Expeditions Holdings  vs.  Academy Sports Outdoors

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. In spite of weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Academy Sports Outdoors

Risk-Adjusted Performance

Very Weak

Over the last 90 days Academy Sports Outdoors has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Lindblad Expeditions and Academy Sports

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

The idea behind Lindblad Expeditions Holdings and Academy Sports Outdoors 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.