Correlation Between SunOpta and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both SunOpta 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 SunOpta and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunOpta and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on SunOpta 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 SunOpta with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunOpta and Lindblad Expeditions.
Diversification Opportunities for SunOpta and Lindblad Expeditions
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SunOpta and Lindblad is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding SunOpta and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and SunOpta 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 SunOpta 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 SunOpta i.e., SunOpta and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between SunOpta and Lindblad Expeditions
Given the investment horizon of 90 days SunOpta is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, SunOpta is 2.29 times less risky than Lindblad Expeditions. The stock trades about -0.06 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,193 in Lindblad Expeditions Holdings on November 7, 2024 and sell it today you would earn a total of 42.00 from holding Lindblad Expeditions Holdings or generate 3.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunOpta vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| SunOpta |
| Lindblad Expeditions |
SunOpta and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunOpta and Lindblad Expeditions
The main advantage of trading using opposite SunOpta and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunOpta 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.| SunOpta vs. Seneca Foods Corp | SunOpta vs. Central Garden Pet | SunOpta vs. Central Garden Pet | SunOpta vs. Natures Sunshine Products |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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