Correlation Between Kenon Holdings and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Kenon Holdings 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 Kenon Holdings and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kenon Holdings and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Kenon Holdings 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 Kenon Holdings with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kenon Holdings and Lindblad Expeditions.
Diversification Opportunities for Kenon Holdings and Lindblad Expeditions
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kenon and Lindblad is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Kenon Holdings and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Kenon Holdings 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 Kenon Holdings 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 Kenon Holdings i.e., Kenon Holdings and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Kenon Holdings and Lindblad Expeditions
Considering the 90-day investment horizon Kenon Holdings is expected to generate 1.41 times less return on investment than Lindblad Expeditions. But when comparing it to its historical volatility, Kenon Holdings is 1.82 times less risky than Lindblad Expeditions. It trades about 0.09 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 785.00 in Lindblad Expeditions Holdings on August 26, 2024 and sell it today you would earn a total of 500.00 from holding Lindblad Expeditions Holdings or generate 63.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kenon Holdings vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Kenon Holdings |
| Lindblad Expeditions |
Kenon Holdings and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kenon Holdings and Lindblad Expeditions
The main advantage of trading using opposite Kenon Holdings and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kenon Holdings 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.| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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