Correlation Between Bt Brands and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Bt Brands 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 Bt Brands and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bt Brands and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Bt Brands 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 Bt Brands with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bt Brands and Lindblad Expeditions.
Diversification Opportunities for Bt Brands and Lindblad Expeditions
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between BTBD and Lindblad is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Bt Brands and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Bt Brands 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 Bt Brands 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 Bt Brands i.e., Bt Brands and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Bt Brands and Lindblad Expeditions
Given the investment horizon of 90 days Bt Brands is expected to generate 1.77 times less return on investment than Lindblad Expeditions. In addition to that, Bt Brands is 1.18 times more volatile than Lindblad Expeditions Holdings. It trades about 0.05 of its total potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.11 per unit of volatility. If you would invest 791.00 in Lindblad Expeditions Holdings on August 25, 2024 and sell it today you would earn a total of 494.00 from holding Lindblad Expeditions Holdings or generate 62.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bt Brands vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Bt Brands |
| Lindblad Expeditions |
Bt Brands and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bt Brands and Lindblad Expeditions
The main advantage of trading using opposite Bt Brands and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bt Brands 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.| Bt Brands vs. Alsea SAB de | Bt Brands vs. Marstons PLC | Bt Brands vs. Bagger Daves Burger | Bt Brands vs. Marstons PLC |
| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |