Correlation Between Lindblad Expeditions and Marchex
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Marchex 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 Marchex 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 Marchex, you can compare the effects of market volatilities on Lindblad Expeditions and Marchex 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 Marchex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Marchex.
Diversification Opportunities for Lindblad Expeditions and Marchex
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and Marchex is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Marchex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marchex 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 Marchex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marchex has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Marchex go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Marchex
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.24 times more return on investment than Marchex. However, Lindblad Expeditions is 1.24 times more volatile than Marchex. It trades about 0.12 of its potential returns per unit of risk. Marchex is currently generating about 0.08 per unit of risk. If you would invest 763.00 in Lindblad Expeditions Holdings on September 1, 2024 and sell it today you would earn a total of 563.00 from holding Lindblad Expeditions Holdings or generate 73.79% 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. Marchex
Performance |
| Timeline |
| Lindblad Expeditions |
| Marchex |
Lindblad Expeditions and Marchex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Marchex
The main advantage of trading using opposite Lindblad Expeditions and Marchex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Marchex 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 Marchex will offset losses from the drop in Marchex's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Marchex vs. Entravision Communications | Marchex vs. Direct Digital Holdings | Marchex vs. Cimpress NV | Marchex vs. Townsquare Media |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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