Correlation Between Rocky Brands and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Rocky Brands 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 Rocky Brands and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rocky Brands and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Rocky Brands 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 Rocky Brands with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rocky Brands and Lindblad Expeditions.
Diversification Opportunities for Rocky Brands and Lindblad Expeditions
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Rocky and Lindblad is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Rocky Brands and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Rocky Brands 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 Rocky Brands 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 Rocky Brands i.e., Rocky Brands and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Rocky Brands and Lindblad Expeditions
Given the investment horizon of 90 days Rocky Brands is expected to generate 0.51 times more return on investment than Lindblad Expeditions. However, Rocky Brands is 1.96 times less risky than Lindblad Expeditions. It trades about 0.35 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.15 per unit of risk. If you would invest 2,280 in Rocky Brands on November 1, 2024 and sell it today you would earn a total of 303.00 from holding Rocky Brands or generate 13.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Rocky Brands vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Rocky Brands |
| Lindblad Expeditions |
Rocky Brands and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rocky Brands and Lindblad Expeditions
The main advantage of trading using opposite Rocky Brands and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rocky Brands 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.| Rocky Brands vs. Vera Bradley | Rocky Brands vs. Steven Madden | Rocky Brands vs. Wolverine World Wide | Rocky Brands vs. Caleres |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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