Correlation Between Lindblad Expeditions and Western Acquisition
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Western 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 Western 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 Western Acquisition Ventures, you can compare the effects of market volatilities on Lindblad Expeditions and Western 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 Western Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Western Acquisition.
Diversification Opportunities for Lindblad Expeditions and Western Acquisition
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lindblad and Western is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Western Acquisition Ventures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Acquisition 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 Western Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Acquisition has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Western Acquisition go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Western Acquisition
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.29 times more return on investment than Western Acquisition. However, Lindblad Expeditions is 2.29 times more volatile than Western Acquisition Ventures. It trades about 0.04 of its potential returns per unit of risk. Western Acquisition Ventures is currently generating about 0.02 per unit of risk. If you would invest 990.00 in Lindblad Expeditions Holdings on August 31, 2024 and sell it today you would earn a total of 336.00 from holding Lindblad Expeditions Holdings or generate 33.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Western Acquisition Ventures
Performance |
| Timeline |
| Lindblad Expeditions |
| Western Acquisition |
Lindblad Expeditions and Western Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Western Acquisition
The main advantage of trading using opposite Lindblad Expeditions and Western Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Western 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 Western Acquisition will offset losses from the drop in Western Acquisition's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Western Acquisition vs. PowerUp Acquisition Corp | Western Acquisition vs. HUMANA INC | Western Acquisition vs. Aquagold International | Western Acquisition vs. Barloworld Ltd ADR |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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