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

Lindblad Expeditions  Lipocine

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

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.

Lipocine

Risk-Adjusted Performance

Very Weak

Over the last 90 days Lipocine 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 fundamental indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

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.

The idea behind Lindblad Expeditions Holdings and Lipocine 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..