Correlation Between Joint Corp and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Joint Corp 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 Joint Corp and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Joint Corp and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Joint Corp 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 Joint Corp with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joint Corp and Lindblad Expeditions.
Diversification Opportunities for Joint Corp and Lindblad Expeditions
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Joint and Lindblad is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding The Joint Corp and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Joint Corp 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 The Joint Corp 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 Joint Corp i.e., Joint Corp and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Joint Corp and Lindblad Expeditions
Given the investment horizon of 90 days The Joint Corp is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, The Joint Corp is 1.19 times less risky than Lindblad Expeditions. The stock trades about -0.01 of its potential returns per unit of risk. The 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Joint Corp vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Joint Corp |
| Lindblad Expeditions |
Joint Corp and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joint Corp and Lindblad Expeditions
The main advantage of trading using opposite Joint Corp and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joint Corp 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.| Joint Corp vs. Encompass Health Corp | Joint Corp vs. Pennant Group | Joint Corp vs. Enhabit | Joint Corp vs. ModivCare |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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