Correlation Between Lindblad Expeditions and Fidelis Insurance

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

Diversification Opportunities for Lindblad Expeditions and Fidelis Insurance

0.57

Correlation Coefficient

Lindblad Expeditions  Fidelis Insurance

Very weak diversification

The 3 months correlation between Lindblad and Fidelis is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Fidelis Insurance Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelis Insurance 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 Fidelis Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelis Insurance has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Fidelis Insurance go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Fidelis Insurance

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Fidelis Insurance. In addition to that, Lindblad Expeditions is 1.51 times more volatile than Fidelis Insurance Holdings. It trades about -0.06 of its total potential returns per unit of risk. Fidelis Insurance Holdings is currently generating about -0.05 per unit of volatility. If you would invest  1,749  in Fidelis Insurance Holdings on December 27, 2024 and sell it today you would lose (144.00) from holding Fidelis Insurance Holdings or give up 8.23% of portfolio value over 90 days.

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

Lindblad Expeditions Holdings  vs.  Fidelis Insurance Holdings

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 latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Fidelis Insurance

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelis Insurance Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unsteady performance, the Stock's technical indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.

Pair Trading with Lindblad Expeditions and Fidelis Insurance

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

The idea behind Lindblad Expeditions Holdings and Fidelis Insurance Holdings 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..