Correlation Between International Game and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both International Game 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 International Game and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Game Technology and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on International Game 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 International Game with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Game and Lindblad Expeditions.
Diversification Opportunities for International Game and Lindblad Expeditions
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between International and Lindblad is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding International Game Technology and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and International Game 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 International Game Technology 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 International Game i.e., International Game and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between International Game and Lindblad Expeditions
Considering the 90-day investment horizon International Game Technology is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, International Game Technology is 3.66 times less risky than Lindblad Expeditions. The stock trades about -0.24 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 991.00 in Lindblad Expeditions Holdings on August 27, 2024 and sell it today you would earn a total of 294.00 from holding Lindblad Expeditions Holdings or generate 29.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
International Game Technology vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| International Game |
| Lindblad Expeditions |
International Game and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Game and Lindblad Expeditions
The main advantage of trading using opposite International Game and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Game 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.| International Game vs. Accel Entertainment | International Game vs. PlayAGS | International Game vs. Everi Holdings | International Game vs. Light Wonder |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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