Correlation Between Valneva SE and Lindblad Expeditions

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

By analyzing existing cross correlation between Valneva SE ADR and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Valneva SE 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 Valneva SE with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valneva SE and Lindblad Expeditions.

Diversification Opportunities for Valneva SE and Lindblad Expeditions

-0.34

Correlation Coefficient

Valneva SE  Lindblad Expeditions

Very good diversification

The 3 months correlation between Valneva and Lindblad is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Valneva SE ADR and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Valneva SE 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 Valneva SE ADR 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 Valneva SE i.e., Valneva SE and Lindblad Expeditions go up and down completely randomly.

Pair Corralation between Valneva SE and Lindblad Expeditions

Given the investment horizon of 90 days Valneva SE ADR is expected to generate 1.58 times more return on investment than Lindblad Expeditions. However, Valneva SE is 1.58 times more volatile than Lindblad Expeditions Holdings. It trades about 0.19 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  432.00  in Valneva SE ADR on December 29, 2024 and sell it today you would earn a total of  293.00  from holding Valneva SE ADR or generate 67.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Valneva SE ADR  vs.  Lindblad Expeditions Holdings

Valneva SE ADR

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Valneva SE ADR are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain essential indicators, Valneva SE displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Valneva SE and Lindblad Expeditions

The main advantage of trading using opposite Valneva SE and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Valneva SE 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 Valneva SE ADR 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.