Correlation Between Lindblad Expeditions and Levi Strauss

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

Diversification Opportunities for Lindblad Expeditions and Levi Strauss

0.81

Correlation Coefficient

Lindblad Expeditions  Levi Strauss

Very poor diversification

The 3 months correlation between Lindblad and Levi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Levi Strauss Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Levi Strauss 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 Levi Strauss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Levi Strauss has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Levi Strauss go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Levi Strauss

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Levi Strauss. In addition to that, Lindblad Expeditions is 1.62 times more volatile than Levi Strauss Co. It trades about -0.06 of its total potential returns per unit of risk. Levi Strauss Co is currently generating about -0.06 per unit of volatility. If you would invest  1,721  in Levi Strauss Co on December 29, 2024 and sell it today you would lose (152.00) from holding Levi Strauss Co or give up 8.83% of portfolio value over 90 days.

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

Lindblad Expeditions Holdings  vs.  Levi Strauss Co

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.

Levi Strauss

Risk-Adjusted Performance

Very Weak

Over the last 90 days Levi Strauss Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Lindblad Expeditions and Levi Strauss

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

The idea behind Lindblad Expeditions Holdings and Levi Strauss Co 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.

Check out your portfolio center.

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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.