Correlation Between Lindblad Expeditions and BJs Restaurants
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and BJs Restaurants 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 BJs Restaurants 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 BJs Restaurants, you can compare the effects of market volatilities on Lindblad Expeditions and BJs Restaurants 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 BJs Restaurants. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and BJs Restaurants.
Diversification Opportunities for Lindblad Expeditions and BJs Restaurants
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindblad and BJs is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and BJs Restaurants in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BJs Restaurants 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 BJs Restaurants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BJs Restaurants has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and BJs Restaurants go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and BJs Restaurants
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.14 times more return on investment than BJs Restaurants. However, Lindblad Expeditions is 2.14 times more volatile than BJs Restaurants. It trades about 0.23 of its potential returns per unit of risk. BJs Restaurants is currently generating about 0.0 per unit of risk. If you would invest 962.00 in Lindblad Expeditions Holdings on August 25, 2024 and sell it today you would earn a total of 323.00 from holding Lindblad Expeditions Holdings or generate 33.58% 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. BJs Restaurants
Performance |
| Timeline |
| Lindblad Expeditions |
| BJs Restaurants |
Lindblad Expeditions and BJs Restaurants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and BJs Restaurants
The main advantage of trading using opposite Lindblad Expeditions and BJs Restaurants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, BJs Restaurants 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 BJs Restaurants will offset losses from the drop in BJs Restaurants' long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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