Correlation Between Lindblad Expeditions and TradeUP Acquisition
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and TradeUP 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 TradeUP 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 TradeUP Acquisition Corp, you can compare the effects of market volatilities on Lindblad Expeditions and TradeUP 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 TradeUP Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and TradeUP Acquisition.
Diversification Opportunities for Lindblad Expeditions and TradeUP Acquisition
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Lindblad and TradeUP is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and TradeUP Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TradeUP 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 TradeUP Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TradeUP Acquisition Corp has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and TradeUP Acquisition go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and TradeUP Acquisition
Given the investment horizon of 90 days Lindblad Expeditions is expected to generate 45.53 times less return on investment than TradeUP Acquisition. But when comparing it to its historical volatility, Lindblad Expeditions Holdings is 8.27 times less risky than TradeUP Acquisition. It trades about 0.04 of its potential returns per unit of risk. TradeUP Acquisition Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 4.06 in TradeUP Acquisition Corp on August 31, 2024 and sell it today you would earn a total of 9.94 from holding TradeUP Acquisition Corp or generate 244.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 11.95% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. TradeUP Acquisition Corp
Performance |
| Timeline |
| Lindblad Expeditions |
| TradeUP Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Lindblad Expeditions and TradeUP Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and TradeUP Acquisition
The main advantage of trading using opposite Lindblad Expeditions and TradeUP Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, TradeUP 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 TradeUP Acquisition will offset losses from the drop in TradeUP Acquisition's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| TradeUP Acquisition vs. Century Aluminum | TradeUP Acquisition vs. EvoAir Holdings | TradeUP Acquisition vs. MI Homes | TradeUP Acquisition vs. Olympic Steel |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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