Correlation Between Lindblad Expeditions and United Guardian

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

Diversification Opportunities for Lindblad Expeditions and United Guardian

0.54

Correlation Coefficient

Lindblad Expeditions  United Guardian

Very weak diversification

The 3 months correlation between Lindblad and United is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and United Guardian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Guardian 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 United Guardian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Guardian has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and United Guardian go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and United Guardian

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the United Guardian. In addition to that, Lindblad Expeditions is 1.61 times more volatile than United Guardian. It trades about -0.06 of its total potential returns per unit of risk. United Guardian is currently generating about 0.0 per unit of volatility. If you would invest  927.00  in United Guardian on December 28, 2024 and sell it today you would lose (7.00) from holding United Guardian or give up 0.76% 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.  United Guardian

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.

United Guardian

Risk-Adjusted Performance

Very Weak

Over the last 90 days United Guardian has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, United Guardian is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Lindblad Expeditions and United Guardian

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

The idea behind Lindblad Expeditions Holdings and United Guardian 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.