Correlation Between Lindblad Expeditions and VF

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

Diversification Opportunities for Lindblad Expeditions and VF

LindbladVFDiversified AwayLindbladVFDiversified Away100%
-0.28
  Correlation Coefficient

Very good diversification

The 3 months correlation between Lindblad and VF is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and VF Corp. in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VF Corporation 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 VF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VF Corporation has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and VF go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and VF

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.1 times more return on investment than VF. However, Lindblad Expeditions is 1.1 times more volatile than VF Corporation. It trades about 0.12 of its potential returns per unit of risk. VF Corporation is currently generating about 0.11 per unit of risk. If you would invest  1,211  in Lindblad Expeditions Holdings on November 21, 2024 and sell it today you would earn a total of  85.00  from holding Lindblad Expeditions Holdings or generate 7.02% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Lindblad Expeditions Holdings  vs.  VF Corp.

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -100102030
JavaScript chart by amCharts 3.21.15LIND VFC
       Timeline  
Lindblad Expeditions 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Lindblad Expeditions may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1111.51212.51313.514
VF Corporation 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in VF Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent technical and fundamental indicators, VF exhibited solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb202224262830

Lindblad Expeditions and VF Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.03-3.77-2.51-1.24-0.02091.212.463.714.966.22 0.0350.0400.0450.0500.0550.0600.065
JavaScript chart by amCharts 3.21.15LIND VFC
       Returns  

Pair Trading with Lindblad Expeditions and VF

The main advantage of trading using opposite Lindblad Expeditions and VF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, VF 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 VF will offset losses from the drop in VF's long position.
The idea behind Lindblad Expeditions Holdings and VF Corporation 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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