Correlation Between Lindblad Expeditions and SOUTHERN

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Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and SOUTHERN 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 SOUTHERN 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 SOUTHERN CALIF EDISON, you can compare the effects of market volatilities on Lindblad Expeditions and SOUTHERN 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 SOUTHERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and SOUTHERN.

Diversification Opportunities for Lindblad Expeditions and SOUTHERN

LindbladSOUTHERNDiversified AwayLindbladSOUTHERNDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Lindblad and SOUTHERN is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and SOUTHERN CALIF EDISON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOUTHERN CALIF EDISON 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 SOUTHERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOUTHERN CALIF EDISON has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and SOUTHERN go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and SOUTHERN

If you would invest  663.00  in Lindblad Expeditions Holdings on September 14, 2024 and sell it today you would earn a total of  490.00  from holding Lindblad Expeditions Holdings or generate 73.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Lindblad Expeditions Holdings  vs.  SOUTHERN CALIF EDISON

 Performance 
JavaScript chart by amCharts 3.21.15OctNov 01020304050
JavaScript chart by amCharts 3.21.15LIND 842400GE7
       Timeline  
Lindblad Expeditions 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Lindblad Expeditions exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15OctNovDecNovDec91011121314
SOUTHERN CALIF EDISON 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SOUTHERN CALIF EDISON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, SOUTHERN is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Lindblad Expeditions and SOUTHERN Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.03-10.51-6.99-3.460.06173.77.411.1114.81 0.0050.0100.0150.020
JavaScript chart by amCharts 3.21.15LIND 842400GE7
       Returns  

Pair Trading with Lindblad Expeditions and SOUTHERN

The main advantage of trading using opposite Lindblad Expeditions and SOUTHERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, SOUTHERN 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 SOUTHERN will offset losses from the drop in SOUTHERN's long position.
The idea behind Lindblad Expeditions Holdings and SOUTHERN CALIF EDISON pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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