Correlation Between Lindblad Expeditions and Hafnia
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Hafnia 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 Hafnia 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 Hafnia Limited, you can compare the effects of market volatilities on Lindblad Expeditions and Hafnia 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 Hafnia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Hafnia.
Diversification Opportunities for Lindblad Expeditions and Hafnia
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lindblad and Hafnia is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Hafnia Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hafnia Limited 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 Hafnia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hafnia Limited has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Hafnia go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Hafnia
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Hafnia. In addition to that, Lindblad Expeditions is 1.47 times more volatile than Hafnia Limited. It trades about -0.05 of its total potential returns per unit of risk. Hafnia Limited is currently generating about 0.15 per unit of volatility. If you would invest 699.00 in Hafnia Limited on March 13, 2024 and sell it today you would earn a total of 131.00 from holding Hafnia Limited or generate 18.74% 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. Hafnia Limited
Performance |
Timeline |
Lindblad Expeditions |
Hafnia Limited |
Lindblad Expeditions and Hafnia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lindblad Expeditions and Hafnia
The main advantage of trading using opposite Lindblad Expeditions and Hafnia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Hafnia 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 Hafnia will offset losses from the drop in Hafnia's long position.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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |