Correlation Between Lindblad Expeditions and ARROW ELECTRONICS
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and ARROW ELECTRONICS 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 Lindblad Expeditions and ARROW ELECTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lindblad Expeditions Holdings and ARROW ELECTRONICS, you can compare the effects of market volatilities on Lindblad Expeditions and ARROW ELECTRONICS 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 Lindblad Expeditions with a short position of ARROW ELECTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and ARROW ELECTRONICS.
Diversification Opportunities for Lindblad Expeditions and ARROW ELECTRONICS
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and ARROW is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and ARROW ELECTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARROW ELECTRONICS and Lindblad Expeditions 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 Lindblad Expeditions Holdings are associated (or correlated) with ARROW ELECTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARROW ELECTRONICS has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and ARROW ELECTRONICS go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and ARROW ELECTRONICS
Assuming the 90 days horizon Lindblad Expeditions Holdings is expected to under-perform the ARROW ELECTRONICS. In addition to that, Lindblad Expeditions is 1.67 times more volatile than ARROW ELECTRONICS. It trades about -0.01 of its total potential returns per unit of risk. ARROW ELECTRONICS is currently generating about 0.13 per unit of volatility. If you would invest 11,000 in ARROW ELECTRONICS on October 25, 2024 and sell it today you would earn a total of 300.00 from holding ARROW ELECTRONICS or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. ARROW ELECTRONICS
Performance |
| Timeline |
| Lindblad Expeditions |
| ARROW ELECTRONICS |
Lindblad Expeditions and ARROW ELECTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and ARROW ELECTRONICS
The main advantage of trading using opposite Lindblad Expeditions and ARROW ELECTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, ARROW ELECTRONICS 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 ARROW ELECTRONICS will offset losses from the drop in ARROW ELECTRONICS's long position.| Lindblad Expeditions vs. GLG LIFE TECH | Lindblad Expeditions vs. BioNTech SE | Lindblad Expeditions vs. Taiwan Semiconductor Manufacturing | Lindblad Expeditions vs. Agilent Technologies |
| ARROW ELECTRONICS vs. AGNC INVESTMENT | ARROW ELECTRONICS vs. TEXAS ROADHOUSE | ARROW ELECTRONICS vs. CDL INVESTMENT | ARROW ELECTRONICS vs. Virtus Investment Partners |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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