Correlation Between Lindblad Expeditions and Getty Copper

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

Diversification Opportunities for Lindblad Expeditions and Getty Copper

0.51

Correlation Coefficient

Lindblad Expeditions  Getty Copper

Very weak diversification

The 3 months correlation between Lindblad and Getty is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Getty Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Getty Copper 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 Getty Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Getty Copper has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Getty Copper go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Getty Copper

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 0.45 times more return on investment than Getty Copper. However, Lindblad Expeditions Holdings is 2.21 times less risky than Getty Copper. It trades about -0.06 of its potential returns per unit of risk. Getty Copper is currently generating about -0.12 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	Weak
Accuracy	95.31%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Getty Copper

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.

Getty Copper

Risk-Adjusted Performance

Very Weak

Over the last 90 days Getty Copper has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Lindblad Expeditions and Getty Copper

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

The idea behind Lindblad Expeditions Holdings and Getty Copper 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.