Correlation Between Lindblad Expeditions and Dalata Hotel

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

Diversification Opportunities for Lindblad Expeditions and Dalata Hotel

0.0

Correlation Coefficient

Lindblad Expeditions  Dalata Hotel

Pay attention - limited upside

The 3 months correlation between Lindblad and Dalata is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Dalata Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalata Hotel 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 Dalata Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalata Hotel Group has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Dalata Hotel go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Dalata Hotel

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 12.09 times more return on investment than Dalata Hotel. However, Lindblad Expeditions is 12.09 times more volatile than Dalata Hotel Group. It trades about 0.05 of its potential returns per unit of risk. Dalata Hotel Group is currently generating about -0.03 per unit of risk. If you would invest  876.00  in Lindblad Expeditions Holdings on October 9, 2024 and sell it today you would earn a total of  263.00  from holding Lindblad Expeditions Holdings or generate 30.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Dalata Hotel 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.

Dalata Hotel Group

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Lindblad Expeditions and Dalata Hotel

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

The idea behind Lindblad Expeditions Holdings and Dalata Hotel 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.