Correlation Between Lindblad Expeditions and Frontier

Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Frontier 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 Frontier 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 Frontier Florida 686, you can compare the effects of market volatilities on Lindblad Expeditions and Frontier 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 Frontier. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Frontier.

Diversification Opportunities for Lindblad Expeditions and Frontier

0.27

Correlation Coefficient

Lindblad Expeditions  Frontier

Modest diversification

The 3 months correlation between Lindblad and Frontier is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Frontier Florida 686 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frontier Florida 686 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 Frontier. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frontier Florida 686 has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Frontier go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Frontier

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Frontier. In addition to that, Lindblad Expeditions is 2.24 times more volatile than Frontier Florida 686. It trades about -0.09 of its total potential returns per unit of risk. Frontier Florida 686 is currently generating about -0.12 per unit of volatility. If you would invest  10,335  in Frontier Florida 686 on December 4, 2024 and sell it today you would lose (1,060) from holding Frontier Florida 686 or give up 10.26% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	93.22%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Frontier Florida 686

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.

Frontier Florida 686

Risk-Adjusted Performance

Very Weak

Over the last 90 days Frontier Florida 686 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Frontier Florida 686 investors.

Pair Trading with Lindblad Expeditions and Frontier

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

The idea behind Lindblad Expeditions Holdings and Frontier Florida 686 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.