Correlation Between Lindblad Expeditions and Enzyme Environmental

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

Diversification Opportunities for Lindblad Expeditions and Enzyme Environmental

0.0

Correlation Coefficient

Lindblad Expeditions  Enzyme Environmental

Pay attention - limited upside

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

Pair Corralation between Lindblad Expeditions and Enzyme Environmental

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Enzyme Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Lindblad Expeditions Holdings is 47.2 times less risky than Enzyme Environmental. The stock trades about -0.08 of its potential returns per unit of risk. The Enzyme Environmental Solutions is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Enzyme Environmental Solutions on October 26, 2024 and sell it today you would earn a total of  0.00  from holding Enzyme Environmental Solutions or generate 9.223372036854776E16% 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.  Enzyme Environmental Solutions

Lindblad Expeditions

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 5 (%) 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.

Enzyme Environmental

Risk-Adjusted Performance

10 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Enzyme Environmental Solutions are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Enzyme Environmental displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindblad Expeditions and Enzyme Environmental

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

The idea behind Lindblad Expeditions Holdings and Enzyme Environmental Solutions 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.