Correlation Between Lindblad Expeditions and Aterian
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Aterian 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 Aterian 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 Aterian, you can compare the effects of market volatilities on Lindblad Expeditions and Aterian 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 Aterian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Aterian.
Diversification Opportunities for Lindblad Expeditions and Aterian
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and Aterian is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Aterian in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aterian 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 Aterian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aterian has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Aterian go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Aterian
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.97 times more return on investment than Aterian. However, Lindblad Expeditions is 1.97 times more volatile than Aterian. It trades about 0.32 of its potential returns per unit of risk. Aterian is currently generating about -0.07 per unit of risk. If you would invest 935.00 in Lindblad Expeditions Holdings on September 4, 2024 and sell it today you would earn a total of 449.00 from holding Lindblad Expeditions Holdings or generate 48.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Aterian
Performance |
| Timeline |
| Lindblad Expeditions |
| Aterian |
Lindblad Expeditions and Aterian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Aterian
The main advantage of trading using opposite Lindblad Expeditions and Aterian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Aterian 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 Aterian will offset losses from the drop in Aterian's long position.| Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. TripAdvisor | Lindblad Expeditions vs. Thayer Ventures Acquisition |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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