Correlation Between Lindblad Expeditions and National Beverage

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

Diversification Opportunities for Lindblad Expeditions and National Beverage

0.12

Correlation Coefficient

Lindblad Expeditions  National Beverage

Average diversification

The 3 months correlation between Lindblad and National is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and National Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Beverage Corp 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 National Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Beverage Corp has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and National Beverage go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and National Beverage

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the National Beverage. In addition to that, Lindblad Expeditions is 2.17 times more volatile than National Beverage Corp. It trades about -0.1 of its total potential returns per unit of risk. National Beverage Corp is currently generating about -0.13 per unit of volatility. If you would invest  4,436  in National Beverage Corp on December 22, 2024 and sell it today you would lose (528.00) from holding National Beverage Corp or give up 11.9% of portfolio value over 90 days.

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

Lindblad Expeditions Holdings  vs.  National Beverage Corp

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.

National Beverage Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days National Beverage Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Lindblad Expeditions and National Beverage

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

The idea behind Lindblad Expeditions Holdings and National Beverage Corp 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.