Correlation Between Lindblad Expeditions and RMG Acquisition
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and RMG Acquisition 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 RMG Acquisition 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 RMG Acquisition Corp, you can compare the effects of market volatilities on Lindblad Expeditions and RMG Acquisition 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 RMG Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and RMG Acquisition.
Diversification Opportunities for Lindblad Expeditions and RMG Acquisition
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and RMG is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and RMG Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RMG Acquisition Corp 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 RMG Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RMG Acquisition Corp has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and RMG Acquisition go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and RMG Acquisition
If you would invest 940.00 in Lindblad Expeditions Holdings on September 2, 2024 and sell it today you would earn a total of 386.00 from holding Lindblad Expeditions Holdings or generate 41.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. RMG Acquisition Corp
Performance |
| Timeline |
| Lindblad Expeditions |
| RMG Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lindblad Expeditions and RMG Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and RMG Acquisition
The main advantage of trading using opposite Lindblad Expeditions and RMG Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, RMG Acquisition 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 RMG Acquisition will offset losses from the drop in RMG Acquisition's long position.| Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp | Lindblad Expeditions vs. TripAdvisor |
| RMG Acquisition vs. Old Dominion Freight | RMG Acquisition vs. Lindblad Expeditions Holdings | RMG Acquisition vs. Fossil Group | RMG Acquisition vs. Nexstar Broadcasting Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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