Correlation Between Lindblad Expeditions and Cumberland Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Cumberland Pharmaceuticals 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 Cumberland Pharmaceuticals 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 Cumberland Pharmaceuticals, you can compare the effects of market volatilities on Lindblad Expeditions and Cumberland Pharmaceuticals 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 Cumberland Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Cumberland Pharmaceuticals.
Diversification Opportunities for Lindblad Expeditions and Cumberland Pharmaceuticals
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lindblad and Cumberland is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Cumberland Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cumberland Pharmaceuticals 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 Cumberland Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cumberland Pharmaceuticals has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Cumberland Pharmaceuticals go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Cumberland Pharmaceuticals
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.27 times more return on investment than Cumberland Pharmaceuticals. However, Lindblad Expeditions is 1.27 times more volatile than Cumberland Pharmaceuticals. It trades about 0.11 of its potential returns per unit of risk. Cumberland Pharmaceuticals is currently generating about 0.0 per unit of risk. If you would invest 774.00 in Lindblad Expeditions Holdings on August 29, 2024 and sell it today you would earn a total of 486.00 from holding Lindblad Expeditions Holdings or generate 62.79% 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. Cumberland Pharmaceuticals
Performance |
| Timeline |
| Lindblad Expeditions |
| Cumberland Pharmaceuticals |
Lindblad Expeditions and Cumberland Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Cumberland Pharmaceuticals
The main advantage of trading using opposite Lindblad Expeditions and Cumberland Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Cumberland Pharmaceuticals 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 Cumberland Pharmaceuticals will offset losses from the drop in Cumberland Pharmaceuticals' long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Cumberland Pharmaceuticals vs. Phibro Animal Health | Cumberland Pharmaceuticals vs. Procaps Group SA | Cumberland Pharmaceuticals vs. Amphastar P | Cumberland Pharmaceuticals vs. Alkermes 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Positions Ratings 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 | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |