Correlation Between 694308JT5 and Lindblad Expeditions

Can any of the company-specific risk be diversified away by investing in both 694308JT5 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 694308JT5 and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between PCG 325 01 JUN 31 and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on 694308JT5 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 694308JT5 with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of 694308JT5 and Lindblad Expeditions.

Diversification Opportunities for 694308JT5 and Lindblad Expeditions

0.19

Correlation Coefficient

694308JT5  Lindblad Expeditions

Average diversification

The 3 months correlation between 694308JT5 and Lindblad is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding PCG 325 01 JUN 31 and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and 694308JT5 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 PCG 325 01 JUN 31 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 694308JT5 i.e., 694308JT5 and Lindblad Expeditions go up and down completely randomly.

Pair Corralation between 694308JT5 and Lindblad Expeditions

Assuming the 90 days trading horizon PCG 325 01 JUN 31 is expected to generate 0.23 times more return on investment than Lindblad Expeditions. However, PCG 325 01 JUN 31 is 4.37 times less risky than Lindblad Expeditions. It trades about -0.14 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about -0.06 per unit of risk. If you would invest  9,194  in PCG 325 01 JUN 31 on December 27, 2024 and sell it today you would lose (568.00) from holding PCG 325 01 JUN 31 or give up 6.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

PCG 325 01 JUN 31  vs.  Lindblad Expeditions Holdings

PCG 325 01

Risk-Adjusted Performance

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 latest fragile 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 PCG 325 01 JUN 31 investors.

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 latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with 694308JT5 and Lindblad Expeditions

The main advantage of trading using opposite 694308JT5 and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 694308JT5 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.

The idea behind PCG 325 01 JUN 31 and Lindblad Expeditions Holdings 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.