Correlation Between Lindblad Expeditions and Tyson Foods
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Tyson Foods 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 Tyson Foods 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 Tyson Foods, you can compare the effects of market volatilities on Lindblad Expeditions and Tyson Foods 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 Tyson Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Tyson Foods.
Diversification Opportunities for Lindblad Expeditions and Tyson Foods
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lindblad and Tyson is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Tyson Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tyson Foods 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 Tyson Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tyson Foods has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Tyson Foods go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Tyson Foods
Assuming the 90 days horizon Lindblad Expeditions Holdings is expected to under-perform the Tyson Foods. In addition to that, Lindblad Expeditions is 1.5 times more volatile than Tyson Foods. It trades about -0.02 of its total potential returns per unit of risk. Tyson Foods is currently generating about 0.18 per unit of volatility. If you would invest 5,567 in Tyson Foods on September 12, 2024 and sell it today you would earn a total of 373.00 from holding Tyson Foods or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Tyson Foods
Performance |
| Timeline |
| Lindblad Expeditions |
| Tyson Foods |
Lindblad Expeditions and Tyson Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Tyson Foods
The main advantage of trading using opposite Lindblad Expeditions and Tyson Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Tyson Foods 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 Tyson Foods will offset losses from the drop in Tyson Foods' long position.| Lindblad Expeditions vs. TRAVEL LEISURE DL 01 | Lindblad Expeditions vs. TripAdvisor | Lindblad Expeditions vs. TRAINLINE PLC LS | Lindblad Expeditions vs. Superior Plus Corp |
| Tyson Foods vs. Mowi ASA | Tyson Foods vs. SalMar ASA | Tyson Foods vs. Superior Plus Corp | Tyson Foods vs. SIVERS SEMICONDUCTORS AB |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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