Correlation Between Lindblad Expeditions and PacifiCorp

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

Diversification Opportunities for Lindblad Expeditions and PacifiCorp

0.5

Correlation Coefficient

Lindblad Expeditions  PacifiCorp

Very weak diversification

The 3 months correlation between Lindblad and PacifiCorp is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and PacifiCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PacifiCorp 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 PacifiCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PacifiCorp has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and PacifiCorp go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and PacifiCorp

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 0.09 times more return on investment than PacifiCorp. However, Lindblad Expeditions Holdings is 11.39 times less risky than PacifiCorp. It trades about -0.09 of its potential returns per unit of risk. PacifiCorp is currently generating about -0.17 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	17.74%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  PacifiCorp

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.

PacifiCorp

Risk-Adjusted Performance

Very Weak

Over the last 90 days PacifiCorp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's essential 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 PacifiCorp

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

The idea behind Lindblad Expeditions Holdings and PacifiCorp 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.