Correlation Between Lindblad Expeditions and Uber Technologies

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

Diversification Opportunities for Lindblad Expeditions and Uber Technologies

-0.24

Correlation Coefficient

Lindblad Expeditions  Uber Technologies

Very good diversification

The 3 months correlation between Lindblad and Uber is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies 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 Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Uber Technologies go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Uber Technologies

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Uber Technologies. In addition to that, Lindblad Expeditions is 1.27 times more volatile than Uber Technologies. It trades about -0.06 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.14 per unit of volatility. If you would invest  6,077  in Uber Technologies on December 28, 2024 and sell it today you would earn a total of  1,341  from holding Uber Technologies or generate 22.07% 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.  Uber Technologies

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.

Uber Technologies

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Uber Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Lindblad Expeditions and Uber Technologies

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

The idea behind Lindblad Expeditions Holdings and Uber Technologies 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.