Correlation Between Lindblad Expeditions and Yatra Online

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

Diversification Opportunities for Lindblad Expeditions and Yatra Online

0.58

Correlation Coefficient

Lindblad Expeditions  Yatra Online

Very weak diversification

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

Pair Corralation between Lindblad Expeditions and Yatra Online

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Yatra Online. But the stock apears to be less risky and, when comparing its historical volatility, Lindblad Expeditions Holdings is 1.19 times less risky than Yatra Online. The stock trades about -0.04 of its potential returns per unit of risk. The Yatra Online is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  158.00  in Yatra Online on February 26, 2024 and sell it today you would lose (5.00) from holding Yatra Online or give up 3.16% 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.  Yatra 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.

Yatra Online

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yatra Online has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Yatra Online is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Lindblad Expeditions and Yatra Online

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

The idea behind Lindblad Expeditions Holdings and Yatra 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.