Correlation Between Lindblad Expeditions and Lipocine
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Lipocine 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 Lipocine 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 Lipocine, you can compare the effects of market volatilities on Lindblad Expeditions and Lipocine 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 Lipocine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Lipocine.
Diversification Opportunities for Lindblad Expeditions and Lipocine
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindblad and Lipocine is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Lipocine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lipocine 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 Lipocine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lipocine has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Lipocine go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Lipocine
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 0.82 times more return on investment than Lipocine. However, Lindblad Expeditions Holdings is 1.22 times less risky than Lipocine. It trades about -0.09 of its potential returns per unit of risk. Lipocine is currently generating about -0.11 per unit of risk. If you would invest 1,204 in Lindblad Expeditions Holdings on December 30, 2024 and sell it today you would lose (251.00) from holding Lindblad Expeditions Holdings or give up 20.85% 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. Lipocine
Performance |
Timeline |
Lindblad Expeditions |
Lipocine |
Lindblad Expeditions and Lipocine Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lindblad Expeditions and Lipocine
The main advantage of trading using opposite Lindblad Expeditions and Lipocine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Lipocine 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 Lipocine will offset losses from the drop in Lipocine's long position.Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp |
Lipocine vs. Reviva Pharmaceuticals Holdings | Lipocine vs. ZyVersa Therapeutics | Lipocine vs. Unicycive Therapeutics | Lipocine vs. Checkpoint Therapeutics |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Stocks Directory Find actively traded stocks across global markets | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |