Correlation Between Lindblad Expeditions and SunOpta
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and SunOpta 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 SunOpta 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 SunOpta, you can compare the effects of market volatilities on Lindblad Expeditions and SunOpta 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 SunOpta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and SunOpta.
Diversification Opportunities for Lindblad Expeditions and SunOpta
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lindblad and SunOpta is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and SunOpta in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SunOpta 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 SunOpta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SunOpta has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and SunOpta go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and SunOpta
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.29 times more return on investment than SunOpta. However, Lindblad Expeditions is 2.29 times more volatile than SunOpta. It trades about 0.07 of its potential returns per unit of risk. SunOpta is currently generating about -0.06 per unit of risk. If you would invest 1,193 in Lindblad Expeditions Holdings on November 7, 2024 and sell it today you would earn a total of 42.00 from holding Lindblad Expeditions Holdings or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. SunOpta
Performance |
| Timeline |
| Lindblad Expeditions |
| SunOpta |
Lindblad Expeditions and SunOpta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and SunOpta
The main advantage of trading using opposite Lindblad Expeditions and SunOpta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, SunOpta 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 SunOpta will offset losses from the drop in SunOpta's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp |
| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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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