Correlation Between NH Foods and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both NH Foods and Lindblad Expeditions 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 NH Foods and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on NH Foods and Lindblad Expeditions 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 NH Foods with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Lindblad Expeditions.
Diversification Opportunities for NH Foods and Lindblad Expeditions
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Lindblad is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and NH Foods 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 NH Foods Ltd are associated (or correlated) with Lindblad Expeditions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lindblad Expeditions has no effect on the direction of NH Foods i.e., NH Foods and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between NH Foods and Lindblad Expeditions
Assuming the 90 days horizon NH Foods is expected to generate 3.63 times less return on investment than Lindblad Expeditions. But when comparing it to its historical volatility, NH Foods Ltd is 7.36 times less risky than Lindblad Expeditions. It trades about 0.09 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 720.00 in Lindblad Expeditions Holdings on September 12, 2024 and sell it today you would earn a total of 454.00 from holding Lindblad Expeditions Holdings or generate 63.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
NH Foods Ltd vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| NH Foods |
| Lindblad Expeditions |
NH Foods and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Lindblad Expeditions
The main advantage of trading using opposite NH Foods and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods position performs unexpectedly, Lindblad Expeditions 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 Lindblad Expeditions will offset losses from the drop in Lindblad Expeditions' long position.The idea behind NH Foods Ltd and Lindblad Expeditions Holdings 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.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |