Correlation Between Lindblad Expeditions and Bloomin Brands
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Bloomin Brands 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 Bloomin Brands 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 Bloomin Brands, you can compare the effects of market volatilities on Lindblad Expeditions and Bloomin Brands 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 Bloomin Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Bloomin Brands.
Diversification Opportunities for Lindblad Expeditions and Bloomin Brands
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lindblad and Bloomin is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Bloomin Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bloomin Brands 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 Bloomin Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bloomin Brands has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Bloomin Brands go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Bloomin Brands
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.46 times more return on investment than Bloomin Brands. However, Lindblad Expeditions is 1.46 times more volatile than Bloomin Brands. It trades about 0.07 of its potential returns per unit of risk. Bloomin Brands is currently generating about -0.07 per unit of risk. If you would invest 839.00 in Lindblad Expeditions Holdings on September 2, 2024 and sell it today you would earn a total of 487.00 from holding Lindblad Expeditions Holdings or generate 58.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Bloomin Brands
Performance |
| Timeline |
| Lindblad Expeditions |
| Bloomin Brands |
Lindblad Expeditions and Bloomin Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Bloomin Brands
The main advantage of trading using opposite Lindblad Expeditions and Bloomin Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Bloomin Brands 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 Bloomin Brands will offset losses from the drop in Bloomin Brands' long position.| Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp | Lindblad Expeditions vs. TripAdvisor |
| Bloomin Brands vs. Dine Brands Global | Bloomin Brands vs. BJs Restaurants | Bloomin Brands vs. The Cheesecake Factory | Bloomin Brands vs. Brinker International |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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