Correlation Between Lindblad Expeditions and Aimfinity Investment
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Aimfinity Investment 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 Aimfinity Investment 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 Aimfinity Investment I, you can compare the effects of market volatilities on Lindblad Expeditions and Aimfinity Investment 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 Aimfinity Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Aimfinity Investment.
Diversification Opportunities for Lindblad Expeditions and Aimfinity Investment
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindblad and Aimfinity is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Aimfinity Investment I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimfinity Investment 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 Aimfinity Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimfinity Investment has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Aimfinity Investment go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Aimfinity Investment
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 11.69 times more return on investment than Aimfinity Investment. However, Lindblad Expeditions is 11.69 times more volatile than Aimfinity Investment I. It trades about 0.12 of its potential returns per unit of risk. Aimfinity Investment I is currently generating about 0.08 per unit of risk. If you would invest 954.00 in Lindblad Expeditions Holdings on August 31, 2024 and sell it today you would earn a total of 306.00 from holding Lindblad Expeditions Holdings or generate 32.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Aimfinity Investment I
Performance |
| Timeline |
| Lindblad Expeditions |
| Aimfinity Investment |
Lindblad Expeditions and Aimfinity Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Aimfinity Investment
The main advantage of trading using opposite Lindblad Expeditions and Aimfinity Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Aimfinity Investment 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 Aimfinity Investment will offset losses from the drop in Aimfinity Investment's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Aimfinity Investment vs. Iridium Communications | Aimfinity Investment vs. NioCorp Developments Ltd | Aimfinity Investment vs. Flexible Solutions International | Aimfinity Investment vs. Tesla Inc |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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