Correlation Between Black Spade and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Black Spade 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 Black Spade and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Black Spade Acquisition and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Black Spade 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 Black Spade with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Black Spade and Lindblad Expeditions.
Diversification Opportunities for Black Spade and Lindblad Expeditions
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Black and Lindblad is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Black Spade Acquisition and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Black Spade 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 Black Spade Acquisition 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 Black Spade i.e., Black Spade and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Black Spade and Lindblad Expeditions
Assuming the 90 days horizon Black Spade is expected to generate 6.15 times less return on investment than Lindblad Expeditions. But when comparing it to its historical volatility, Black Spade Acquisition is 19.98 times less risky than Lindblad Expeditions. It trades about 0.06 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,234 in Lindblad Expeditions Holdings on October 24, 2024 and sell it today you would lose (57.50) from holding Lindblad Expeditions Holdings or give up 4.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 20.24% |
| Values | Daily Returns |
Black Spade Acquisition vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Black Spade Acquisition |
| Lindblad Expeditions |
Black Spade and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Black Spade and Lindblad Expeditions
The main advantage of trading using opposite Black Spade and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Black Spade 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.| Black Spade vs. Altair Engineering | Black Spade vs. Corporacion America Airports | Black Spade vs. Emerson Electric | Black Spade vs. Hurco Companies |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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