Correlation Between Lindblad Expeditions and ONCOR

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

Diversification Opportunities for Lindblad Expeditions and ONCOR

0.27

Correlation Coefficient

Lindblad Expeditions  ONCOR

Modest diversification

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

Pair Corralation between Lindblad Expeditions and ONCOR

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the ONCOR. In addition to that, Lindblad Expeditions is 4.8 times more volatile than ONCOR ELEC DELIVERY. It trades about -0.1 of its total potential returns per unit of risk. ONCOR ELEC DELIVERY is currently generating about -0.14 per unit of volatility. If you would invest  9,928  in ONCOR ELEC DELIVERY on December 4, 2024 and sell it today you would lose (315.00) from holding ONCOR ELEC DELIVERY or give up 3.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	53.33%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  ONCOR ELEC DELIVERY

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.

ONCOR ELEC DELIVERY

Risk-Adjusted Performance

Very Weak

Over the last 90 days ONCOR ELEC DELIVERY has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ONCOR 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 ONCOR

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

The idea behind Lindblad Expeditions Holdings and ONCOR ELEC DELIVERY 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.