Correlation Between Lindblad Expeditions and BBB Foods
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and BBB Foods 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 BBB Foods 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 BBB Foods, you can compare the effects of market volatilities on Lindblad Expeditions and BBB Foods 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 BBB Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and BBB Foods.
Diversification Opportunities for Lindblad Expeditions and BBB Foods
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Lindblad and BBB is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and BBB Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BBB Foods 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 BBB Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BBB Foods has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and BBB Foods go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and BBB Foods
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.92 times more return on investment than BBB Foods. However, Lindblad Expeditions is 1.92 times more volatile than BBB Foods. It trades about 0.23 of its potential returns per unit of risk. BBB Foods is currently generating about -0.16 per unit of risk. If you would invest 952.00 in Lindblad Expeditions Holdings on August 31, 2024 and sell it today you would earn a total of 308.00 from holding Lindblad Expeditions Holdings or generate 32.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. BBB Foods
Performance |
| Timeline |
| Lindblad Expeditions |
| BBB Foods |
Lindblad Expeditions and BBB Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and BBB Foods
The main advantage of trading using opposite Lindblad Expeditions and BBB Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, BBB Foods 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 BBB Foods will offset losses from the drop in BBB Foods' long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| BBB Foods vs. Citizens Bancorp Investment | BBB Foods vs. Stepstone Group | BBB Foods vs. Independence Realty Trust | BBB Foods vs. Western Sierra Mining |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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