Correlation Between Lindblad Expeditions and Algoma Steel
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Algoma Steel 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 Algoma Steel 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 Algoma Steel Group, you can compare the effects of market volatilities on Lindblad Expeditions and Algoma Steel 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 Algoma Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Algoma Steel.
Diversification Opportunities for Lindblad Expeditions and Algoma Steel
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lindblad and Algoma is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Algoma Steel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Algoma Steel Group 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 Algoma Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Algoma Steel Group has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Algoma Steel go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Algoma Steel
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.74 times more return on investment than Algoma Steel. However, Lindblad Expeditions is 1.74 times more volatile than Algoma Steel Group. It trades about 0.04 of its potential returns per unit of risk. Algoma Steel Group is currently generating about 0.06 per unit of risk. If you would invest 720.00 in Lindblad Expeditions Holdings on September 12, 2024 and sell it today you would earn a total of 454.00 from holding Lindblad Expeditions Holdings or generate 63.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Algoma Steel Group
Performance |
| Timeline |
| Lindblad Expeditions |
| Algoma Steel Group |
Lindblad Expeditions and Algoma Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Algoma Steel
The main advantage of trading using opposite Lindblad Expeditions and Algoma Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Algoma Steel 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 Algoma Steel will offset losses from the drop in Algoma Steel's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Algoma Steel vs. Friedman Industries | Algoma Steel vs. ArcelorMittal SA | Algoma Steel vs. Aperam PK | Algoma Steel vs. Acerinox SA ADR |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |