Correlation Between Lindblad Expeditions and Lewis Clark

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

Diversification Opportunities for Lindblad Expeditions and Lewis Clark

-0.55

Correlation Coefficient

Lindblad Expeditions  Lewis Clark

Excellent diversification

The 3 months correlation between Lindblad and Lewis is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Lewis Clark Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lewis Clark Bancorp 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 Lewis Clark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lewis Clark Bancorp has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Lewis Clark go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Lewis Clark

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Lewis Clark. In addition to that, Lindblad Expeditions is 2.29 times more volatile than Lewis Clark Bancorp. It trades about -0.08 of its total potential returns per unit of risk. Lewis Clark Bancorp is currently generating about 0.09 per unit of volatility. If you would invest  3,005  in Lewis Clark Bancorp on December 21, 2024 and sell it today you would earn a total of  224.00  from holding Lewis Clark Bancorp or generate 7.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Lewis Clark Bancorp

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.

Lewis Clark Bancorp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lewis Clark Bancorp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady fundamental indicators, Lewis Clark may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Lindblad Expeditions and Lewis Clark

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

The idea behind Lindblad Expeditions Holdings and Lewis Clark Bancorp 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.