Correlation Between Lindblad Expeditions and Canlan Ice
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Canlan Ice 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 Canlan Ice 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 Canlan Ice Sports, you can compare the effects of market volatilities on Lindblad Expeditions and Canlan Ice 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 Canlan Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Canlan Ice.
Diversification Opportunities for Lindblad Expeditions and Canlan Ice
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lindblad and Canlan is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Canlan Ice Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Canlan Ice Sports 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 Canlan Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Canlan Ice Sports has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Canlan Ice go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Canlan Ice
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 40.09 times more return on investment than Canlan Ice. However, Lindblad Expeditions is 40.09 times more volatile than Canlan Ice Sports. It trades about 0.04 of its potential returns per unit of risk. Canlan Ice Sports is currently generating about 0.13 per unit of risk. If you would invest 893.00 in Lindblad Expeditions Holdings on August 25, 2024 and sell it today you would earn a total of 392.00 from holding Lindblad Expeditions Holdings or generate 43.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Canlan Ice Sports
Performance |
| Timeline |
| Lindblad Expeditions |
| Canlan Ice Sports |
Lindblad Expeditions and Canlan Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Canlan Ice
The main advantage of trading using opposite Lindblad Expeditions and Canlan Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Canlan Ice 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 Canlan Ice will offset losses from the drop in Canlan Ice's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Canlan Ice vs. HUMANA INC | Canlan Ice vs. Aquagold International | Canlan Ice vs. Barloworld Ltd ADR | Canlan Ice vs. Morningstar Unconstrained Allocation |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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