Correlation Between Lindblad Expeditions and Aluminumof China
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Aluminumof China 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 Aluminumof China 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 Aluminum of, you can compare the effects of market volatilities on Lindblad Expeditions and Aluminumof China 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 Aluminumof China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Aluminumof China.
Diversification Opportunities for Lindblad Expeditions and Aluminumof China
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and Aluminumof is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Aluminum of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminumof China 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 Aluminumof China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminumof China has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Aluminumof China go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Aluminumof China
Given the investment horizon of 90 days Lindblad Expeditions is expected to generate 1.38 times less return on investment than Aluminumof China. But when comparing it to its historical volatility, Lindblad Expeditions Holdings is 1.32 times less risky than Aluminumof China. It trades about 0.06 of its potential returns per unit of risk. Aluminum of is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Aluminum of on November 3, 2024 and sell it today you would earn a total of 20.00 from holding Aluminum of or generate 44.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 87.5% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Aluminum of
Performance |
| Timeline |
| Lindblad Expeditions |
| Aluminumof China |
Lindblad Expeditions and Aluminumof China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Aluminumof China
The main advantage of trading using opposite Lindblad Expeditions and Aluminumof China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Aluminumof China 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 Aluminumof China will offset losses from the drop in Aluminumof China's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp |
| Aluminumof China vs. Air China Limited | Aluminumof China vs. COSCO SHIPPING Holdings | Aluminumof China vs. Zijin Mining Group | Aluminumof China vs. Bank of China |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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