Correlation Between Lindblad Expeditions and Bt Brands
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Bt 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 Bt 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 Bt Brands, you can compare the effects of market volatilities on Lindblad Expeditions and Bt 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 Bt Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Bt Brands.
Diversification Opportunities for Lindblad Expeditions and Bt Brands
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Lindblad and BTBD is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Bt Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bt 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 Bt Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bt Brands has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Bt Brands go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Bt Brands
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.5 times more return on investment than Bt Brands. However, Lindblad Expeditions is 1.5 times more volatile than Bt Brands. It trades about 0.23 of its potential returns per unit of risk. Bt Brands is currently generating about -0.12 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Bt Brands
Performance |
| Timeline |
| Lindblad Expeditions |
| Bt Brands |
Lindblad Expeditions and Bt Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Bt Brands
The main advantage of trading using opposite Lindblad Expeditions and Bt Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Bt 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 Bt Brands will offset losses from the drop in Bt Brands' long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Bt Brands vs. Alsea SAB de | Bt Brands vs. Marstons PLC | Bt Brands vs. Bagger Daves Burger | Bt Brands vs. Marstons PLC |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |