Correlation Between Lindblad Expeditions and Under Armour
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Under Armour 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 Under Armour 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 Under Armour C, you can compare the effects of market volatilities on Lindblad Expeditions and Under Armour 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 Under Armour. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Under Armour.
Diversification Opportunities for Lindblad Expeditions and Under Armour
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindblad and Under is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Under Armour C in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Under Armour C 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 Under Armour. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Under Armour C has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Under Armour go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Under Armour
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.04 times more return on investment than Under Armour. However, Lindblad Expeditions is 1.04 times more volatile than Under Armour C. It trades about 0.3 of its potential returns per unit of risk. Under Armour C is currently generating about 0.11 per unit of risk. If you would invest 935.00 in Lindblad Expeditions Holdings on September 3, 2024 and sell it today you would earn a total of 391.00 from holding Lindblad Expeditions Holdings or generate 41.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Under Armour C
Performance |
| Timeline |
| Lindblad Expeditions |
| Under Armour C |
Lindblad Expeditions and Under Armour Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Under Armour
The main advantage of trading using opposite Lindblad Expeditions and Under Armour positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Under Armour 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 Under Armour will offset losses from the drop in Under Armour's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Under Armour vs. Levi Strauss Co | Under Armour vs. Columbia Sportswear | Under Armour vs. Hanesbrands | Under Armour vs. PVH Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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