Correlation Between Lindblad Expeditions and Mechel OAO
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Mechel OAO 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 Mechel OAO 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 Mechel OAO, you can compare the effects of market volatilities on Lindblad Expeditions and Mechel OAO 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 Mechel OAO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Mechel OAO.
Diversification Opportunities for Lindblad Expeditions and Mechel OAO
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and Mechel is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Mechel OAO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mechel OAO 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 Mechel OAO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mechel OAO has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Mechel OAO go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Mechel OAO
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 | Very Weak |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Mechel OAO
Performance |
| Timeline |
| Lindblad Expeditions |
| Mechel OAO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lindblad Expeditions and Mechel OAO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Mechel OAO
The main advantage of trading using opposite Lindblad Expeditions and Mechel OAO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Mechel OAO 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 Mechel OAO will offset losses from the drop in Mechel OAO's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Mechel OAO vs. Biglari Holdings | Mechel OAO vs. Viemed Healthcare | Mechel OAO vs. Shake Shack | Mechel OAO vs. The Joint 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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