Correlation Between Ihuman and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Ihuman 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 Ihuman and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihuman Inc and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Ihuman 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 Ihuman with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihuman and Lindblad Expeditions.
Diversification Opportunities for Ihuman and Lindblad Expeditions
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ihuman and Lindblad is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ihuman Inc and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Ihuman 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 Ihuman Inc 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 Ihuman i.e., Ihuman and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Ihuman and Lindblad Expeditions
Allowing for the 90-day total investment horizon Ihuman Inc is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, Ihuman Inc is 2.73 times less risky than Lindblad Expeditions. The stock trades about -0.19 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 952.00 in Lindblad Expeditions Holdings on August 31, 2024 and sell it today you would earn a total of 308.00 from holding Lindblad Expeditions Holdings or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihuman Inc vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Ihuman Inc |
| Lindblad Expeditions |
Ihuman and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihuman and Lindblad Expeditions
The main advantage of trading using opposite Ihuman and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihuman 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.| Ihuman vs. Boqii Holding Limited | Ihuman vs. Lixiang Education Holding | Ihuman vs. Huize Holding | Ihuman vs. Kuke Music Holding |
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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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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