Correlation Between Lindblad Expeditions and Ryanair Holdings

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

Diversification Opportunities for Lindblad Expeditions and Ryanair Holdings

-0.32

Correlation Coefficient

Lindblad Expeditions  Ryanair Holdings

Very good diversification

The 3 months correlation between Lindblad and Ryanair is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Ryanair Holdings PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ryanair Holdings PLC 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 Ryanair Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ryanair Holdings PLC has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Ryanair Holdings go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Ryanair Holdings

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Ryanair Holdings. In addition to that, Lindblad Expeditions is 1.59 times more volatile than Ryanair Holdings PLC. It trades about -0.06 of its total potential returns per unit of risk. Ryanair Holdings PLC is currently generating about 0.04 per unit of volatility. If you would invest  4,357  in Ryanair Holdings PLC on December 27, 2024 and sell it today you would earn a total of  184.00  from holding Ryanair Holdings PLC or generate 4.22% return on investment over 90 days.

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

Lindblad Expeditions Holdings  vs.  Ryanair Holdings PLC

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 latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Ryanair Holdings PLC

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ryanair Holdings PLC are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong basic indicators, Ryanair Holdings is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lindblad Expeditions and Ryanair Holdings

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

The idea behind Lindblad Expeditions Holdings and Ryanair Holdings PLC 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.