Correlation Between Nissan Chemical and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Nissan Chemical and Lindblad Expeditions 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 Nissan Chemical and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nissan Chemical Corp and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Nissan Chemical and Lindblad Expeditions 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 Nissan Chemical with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nissan Chemical and Lindblad Expeditions.
Diversification Opportunities for Nissan Chemical and Lindblad Expeditions
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Nissan and Lindblad is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Nissan Chemical Corp and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Nissan Chemical 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 Nissan Chemical Corp are associated (or correlated) with Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of Nissan Chemical i.e., Nissan Chemical and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Nissan Chemical and Lindblad Expeditions
Assuming the 90 days trading horizon Nissan Chemical Corp is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, Nissan Chemical Corp is 2.35 times less risky than Lindblad Expeditions. The stock trades about -0.03 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,030 in Lindblad Expeditions Holdings on October 22, 2024 and sell it today you would earn a total of 80.00 from holding Lindblad Expeditions Holdings or generate 7.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nissan Chemical Corp vs. Lindblad Expeditions Holdings
Performance |
Timeline |
Nissan Chemical Corp |
Lindblad Expeditions |
Nissan Chemical and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nissan Chemical and Lindblad Expeditions
The main advantage of trading using opposite Nissan Chemical and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nissan Chemical position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.Nissan Chemical vs. Teradata Corp | Nissan Chemical vs. SCANDMEDICAL SOLDK 040 | Nissan Chemical vs. Diamyd Medical AB | Nissan Chemical vs. MeVis Medical Solutions |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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