Norwegian Cruise Correlations

NCLH Stock

USD 28.46 0.02 0.07%

The current 90-days correlation between Norwegian Cruise Line and Carnival is 0.88 (i.e., Very poor diversification). The correlation of Norwegian Cruise is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Norwegian Cruise Correlation With Market

Average diversification

The correlation between Norwegian Cruise Line and DJI is 0.16 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Norwegian Cruise Line and DJI in the same portfolio, assuming nothing else is changed.

Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Norwegian Cruise Line. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.

Moving together with Norwegian Stock

0.67	DKNG	DraftKings	Pair Corr
0.65	WING	Wingstop	Pair Corr
0.62	CUK	Carnival Plc ADS	Pair Corr
0.61	CZR	Caesars Entertainment	Pair Corr

Moving against Norwegian Stock

0.4	BH	Biglari Holdings	Pair Corr
0.33	WW	WW International	Pair Corr
0.32	HDL	SUPER HI INTERNATIONAL	Pair Corr

Related Correlations Analysis

	CCL	ABNB	EXPE	BKNG	RCL	TRIP
CCL		-0.05	-0.05	0.4	0.94	-0.11	CCL
ABNB	-0.05		0.16	0.47	0.02	-0.07	ABNB
EXPE	-0.05	0.16		0.71	-0.11	-0.73	EXPE
BKNG	0.4	0.47	0.71		0.42	-0.68	BKNG
RCL	0.94	0.02	-0.11	0.42		-0.11	RCL
TRIP	-0.11	-0.07	-0.73	-0.68	-0.11		TRIP
	CCL	ABNB	EXPE	BKNG	RCL	TRIP

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

RCL	+ 0.94	CCL
BKNG	+ 0.71	EXPE
BKNG	+ 0.47	ABNB
RCL	+ 0.42	BKNG
BKNG	+ 0.4	CCL
EXPE	+ 0.16	ABNB

High negative correlations

TRIP	- 0.73	EXPE
TRIP	- 0.68	BKNG
TRIP	- 0.11	RCL
RCL	- 0.11	EXPE
TRIP	- 0.11	CCL
TRIP	- 0.07	ABNB

Risk-Adjusted Indicators

There is a big difference between Norwegian Stock performing well and Norwegian Cruise Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Norwegian Cruise's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
CCL	1.65	0.42	0.18	(4.68)	1.47	(1.99)	3.19	(2.52)	12.51
ABNB	1.55	(0.04)	0.00	(0.04)	0.00	0.00	3.22	(3.55)	13.24
EXPE	1.33	0.09	0.03	0.31	1.59	(1.46)	2.51	(3.01)	8.51
BKNG	1.20	(0.01)	(0.03)	0.06	1.76	(1.12)	2.47	(2.73)	8.76
RCL	1.60	0.47	0.21	(313.10)	1.48	(1.93)	3.66	(2.70)	12.71
TRIP	2.18	0.14	0.04	0.23	3.05	(2.26)	3.35	(4.39)	16.78

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