Correlation Between Lindblad Expeditions and Global E

Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Global E 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 Global E 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 Global E Online, you can compare the effects of market volatilities on Lindblad Expeditions and Global E 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 Global E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Global E.

Diversification Opportunities for Lindblad Expeditions and Global E

0.58

Correlation Coefficient

Lindblad Expeditions  Global E

Very weak diversification

The 3 months correlation between Lindblad and Global is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Global E Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global E Online 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 Global E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global E Online has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Global E go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Global E

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.01 times more return on investment than Global E. However, Lindblad Expeditions is 1.01 times more volatile than Global E Online. It trades about -0.04 of its potential returns per unit of risk. Global E Online is currently generating about -0.05 per unit of risk. If you would invest  853.00  in Lindblad Expeditions Holdings on March 7, 2024 and sell it today you would lose (72.00) from holding Lindblad Expeditions Holdings or give up 8.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Global E Online

Lindblad Expeditions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Lindblad Expeditions Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Global E Online

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global E Online has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with Lindblad Expeditions and Global E

The main advantage of trading using opposite Lindblad Expeditions and Global E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Global E 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 Global E will offset losses from the drop in Global E's long position.

The idea behind Lindblad Expeditions Holdings and Global E Online 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.