Correlation Between Lindblad Expeditions and International Game
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and International Game 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 International Game 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 International Game Technology, you can compare the effects of market volatilities on Lindblad Expeditions and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and International Game.
Diversification Opportunities for Lindblad Expeditions and International Game
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and International is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and International Game go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and International Game
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 3.49 times more return on investment than International Game. However, Lindblad Expeditions is 3.49 times more volatile than International Game Technology. It trades about 0.23 of its potential returns per unit of risk. International Game Technology is currently generating about -0.14 per unit of risk. If you would invest 958.00 in Lindblad Expeditions Holdings on August 24, 2024 and sell it today you would earn a total of 319.00 from holding Lindblad Expeditions Holdings or generate 33.3% 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. International Game Technology
Performance |
| Timeline |
| Lindblad Expeditions |
| International Game |
Lindblad Expeditions and International Game Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and International Game
The main advantage of trading using opposite Lindblad Expeditions and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| International Game vs. Accel Entertainment | International Game vs. Light Wonder | International Game vs. Inspired Entertainment | International Game vs. PlayAGS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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