Correlation Between Lindblad Expeditions and TFI International
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and TFI International 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 TFI International 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 TFI International, you can compare the effects of market volatilities on Lindblad Expeditions and TFI International 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 TFI International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and TFI International.
Diversification Opportunities for Lindblad Expeditions and TFI International
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lindblad and TFI is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and TFI International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TFI International 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 TFI International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TFI International has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and TFI International go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and TFI International
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.49 times more return on investment than TFI International. However, Lindblad Expeditions is 2.49 times more volatile than TFI International. It trades about 0.23 of its potential returns per unit of risk. TFI International is currently generating about 0.18 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. TFI International
Performance |
| Timeline |
| Lindblad Expeditions |
| TFI International |
Lindblad Expeditions and TFI International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and TFI International
The main advantage of trading using opposite Lindblad Expeditions and TFI International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, TFI International 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 TFI International will offset losses from the drop in TFI International's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| TFI International vs. Old Dominion Freight | TFI International vs. ArcBest Corp | TFI International vs. Marten Transport | TFI International vs. Werner Enterprises |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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