Correlation Between Lindblad Expeditions and Kontoor Brands
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Kontoor 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 Kontoor 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 Kontoor Brands, you can compare the effects of market volatilities on Lindblad Expeditions and Kontoor 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 Kontoor Brands. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Kontoor Brands.
Diversification Opportunities for Lindblad Expeditions and Kontoor Brands
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lindblad and Kontoor is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Kontoor Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontoor 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 Kontoor Brands. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontoor Brands has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Kontoor Brands go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Kontoor Brands
Given the investment horizon of 90 days Lindblad Expeditions is expected to generate 1.14 times less return on investment than Kontoor Brands. In addition to that, Lindblad Expeditions is 1.8 times more volatile than Kontoor Brands. It trades about 0.04 of its total potential returns per unit of risk. Kontoor Brands is currently generating about 0.08 per unit of volatility. If you would invest 4,000 in Kontoor Brands on September 3, 2024 and sell it today you would earn a total of 5,178 from holding Kontoor Brands or generate 129.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Kontoor Brands
Performance |
| Timeline |
| Lindblad Expeditions |
| Kontoor Brands |
Lindblad Expeditions and Kontoor Brands Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Kontoor Brands
The main advantage of trading using opposite Lindblad Expeditions and Kontoor Brands positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Kontoor 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 Kontoor Brands will offset losses from the drop in Kontoor Brands' long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Kontoor Brands vs. Vince Holding Corp | Kontoor Brands vs. Ermenegildo Zegna NV | Kontoor Brands vs. Columbia Sportswear | Kontoor Brands vs. Gildan Activewear |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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