Correlation Between Lindblad Expeditions and Capital Southwest
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Capital Southwest 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 Capital Southwest 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 Capital Southwest, you can compare the effects of market volatilities on Lindblad Expeditions and Capital Southwest 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 Capital Southwest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Capital Southwest.
Diversification Opportunities for Lindblad Expeditions and Capital Southwest
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindblad and Capital is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Capital Southwest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Southwest 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 Capital Southwest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Southwest has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Capital Southwest go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Capital Southwest
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 8.77 times more return on investment than Capital Southwest. However, Lindblad Expeditions is 8.77 times more volatile than Capital Southwest. It trades about 0.06 of its potential returns per unit of risk. Capital Southwest is currently generating about 0.07 per unit of risk. If you would invest 924.00 in Lindblad Expeditions Holdings on August 28, 2024 and sell it today you would earn a total of 358.00 from holding Lindblad Expeditions Holdings or generate 38.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.52% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Capital Southwest
Performance |
| Timeline |
| Lindblad Expeditions |
| Capital Southwest |
Lindblad Expeditions and Capital Southwest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Capital Southwest
The main advantage of trading using opposite Lindblad Expeditions and Capital Southwest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Capital Southwest 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 Capital Southwest will offset losses from the drop in Capital Southwest's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Capital Southwest vs. Marine Products | Capital Southwest vs. Helmerich and Payne | Capital Southwest vs. Sonos Inc | Capital Southwest vs. National Beverage Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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