Correlation Between Lindblad Expeditions and 694308JT5

Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and 694308JT5 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 694308JT5 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 PCG 325 01 JUN 31, you can compare the effects of market volatilities on Lindblad Expeditions and 694308JT5 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 694308JT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and 694308JT5.

Diversification Opportunities for Lindblad Expeditions and 694308JT5

0.56

Correlation Coefficient

Lindblad Expeditions  694308JT5

Very weak diversification

The 3 months correlation between Lindblad and 694308JT5 is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and PCG 325 01 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PCG 325 01 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 694308JT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PCG 325 01 has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and 694308JT5 go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and 694308JT5

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.82 times more return on investment than 694308JT5. However, Lindblad Expeditions is 2.82 times more volatile than PCG 325 01 JUN 31. It trades about 0.1 of its potential returns per unit of risk. PCG 325 01 JUN 31 is currently generating about -0.15 per unit of risk. If you would invest  927.00  in Lindblad Expeditions Holdings on October 7, 2024 and sell it today you would earn a total of  224.00  from holding Lindblad Expeditions Holdings or generate 24.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	84.13%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  PCG 325 01 JUN 31

Lindblad Expeditions

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Lindblad Expeditions exhibited solid returns over the last few months and may actually be approaching a breakup point.

PCG 325 01

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days PCG 325 01 JUN 31 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for PCG 325 01 JUN 31 investors.

Pair Trading with Lindblad Expeditions and 694308JT5

The main advantage of trading using opposite Lindblad Expeditions and 694308JT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, 694308JT5 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 694308JT5 will offset losses from the drop in 694308JT5's long position.

The idea behind Lindblad Expeditions Holdings and PCG 325 01 JUN 31 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.