Correlation Between Lindblad Expeditions and Wingstop
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Wingstop 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 Wingstop 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 Wingstop, you can compare the effects of market volatilities on Lindblad Expeditions and Wingstop 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 Wingstop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Wingstop.
Diversification Opportunities for Lindblad Expeditions and Wingstop
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lindblad and Wingstop is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Wingstop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wingstop 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 Wingstop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wingstop has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Wingstop go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Wingstop
Given the investment horizon of 90 days Lindblad Expeditions is expected to generate 1.79 times less return on investment than Wingstop. In addition to that, Lindblad Expeditions is 1.74 times more volatile than Wingstop. It trades about 0.03 of its total potential returns per unit of risk. Wingstop is currently generating about 0.08 per unit of volatility. If you would invest 16,291 in Wingstop on August 27, 2024 and sell it today you would earn a total of 17,469 from holding Wingstop or generate 107.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Wingstop
Performance |
| Timeline |
| Lindblad Expeditions |
| Wingstop |
Lindblad Expeditions and Wingstop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Wingstop
The main advantage of trading using opposite Lindblad Expeditions and Wingstop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Wingstop 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 Wingstop will offset losses from the drop in Wingstop's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Wingstop vs. Papa Johns International | Wingstop vs. Chipotle Mexican Grill | Wingstop vs. The Wendys Co | Wingstop vs. Dominos Pizza |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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