Correlation Between Western Union and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Western Union 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 Western Union and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Western Union Co and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Western Union 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 Western Union with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Union and Lindblad Expeditions.
Diversification Opportunities for Western Union and Lindblad Expeditions
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Western and Lindblad is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Western Union Co and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Western Union 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 Western Union Co 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 Western Union i.e., Western Union and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Western Union and Lindblad Expeditions
Allowing for the 90-day total investment horizon Western Union Co is expected to generate 0.43 times more return on investment than Lindblad Expeditions. However, Western Union Co is 2.35 times less risky than Lindblad Expeditions. It trades about 0.1 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about -0.17 per unit of risk. If you would invest 1,086 in Western Union Co on September 18, 2024 and sell it today you would earn a total of 30.00 from holding Western Union Co or generate 2.76% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Western Union Co vs. Lindblad Expeditions Holdings
Performance |
Timeline |
Western Union |
Lindblad Expeditions |
Western Union and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Western Union and Lindblad Expeditions
The main advantage of trading using opposite Western Union and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Union 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.Western Union vs. Navient Corp | ||
Western Union vs. Green Dot | ||
Western Union vs. Orix Corp Ads | ||
Western Union vs. FirstCash |
Lindblad Expeditions vs. Yatra Online | ||
Lindblad Expeditions vs. Despegar Corp | ||
Lindblad Expeditions vs. MakeMyTrip Limited | ||
Lindblad Expeditions vs. Tuniu Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |