Correlation Between Lindblad Expeditions and PacifiCorp
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and PacifiCorp 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 PacifiCorp 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 PacifiCorp, you can compare the effects of market volatilities on Lindblad Expeditions and PacifiCorp 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 PacifiCorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and PacifiCorp.
Diversification Opportunities for Lindblad Expeditions and PacifiCorp
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Lindblad and PacifiCorp is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and PacifiCorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PacifiCorp 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 PacifiCorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PacifiCorp has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and PacifiCorp go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and PacifiCorp
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the PacifiCorp. In addition to that, Lindblad Expeditions is 1.42 times more volatile than PacifiCorp. It trades about -0.16 of its total potential returns per unit of risk. PacifiCorp is currently generating about -0.07 per unit of volatility. If you would invest 14,000 in PacifiCorp on September 13, 2024 and sell it today you would lose (505.00) from holding PacifiCorp or give up 3.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. PacifiCorp
Performance |
| Timeline |
| Lindblad Expeditions |
| PacifiCorp |
Lindblad Expeditions and PacifiCorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and PacifiCorp
The main advantage of trading using opposite Lindblad Expeditions and PacifiCorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, PacifiCorp 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 PacifiCorp will offset losses from the drop in PacifiCorp's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| PacifiCorp vs. Emerson Electric | PacifiCorp vs. Cementos Pacasmayo SAA | PacifiCorp vs. Tyson Foods | PacifiCorp vs. Taiwan Semiconductor Manufacturing |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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