Correlation Between National CineMedia and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both National CineMedia 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 National CineMedia and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between National CineMedia and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on National CineMedia 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 National CineMedia with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of National CineMedia and Lindblad Expeditions.
Diversification Opportunities for National CineMedia and Lindblad Expeditions
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between National and Lindblad is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding National CineMedia and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and National CineMedia 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 National CineMedia 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 National CineMedia i.e., National CineMedia and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between National CineMedia and Lindblad Expeditions
Given the investment horizon of 90 days National CineMedia is expected to generate 1.33 times more return on investment than Lindblad Expeditions. However, National CineMedia is 1.33 times more volatile than Lindblad Expeditions Holdings. It trades about 0.09 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about -0.05 per unit of risk. If you would invest 408.00 in National CineMedia on March 13, 2024 and sell it today you would earn a total of 76.00 from holding National CineMedia or generate 18.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
National CineMedia vs. Lindblad Expeditions Holdings
Performance |
Timeline |
National CineMedia |
Lindblad Expeditions |
National CineMedia and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with National CineMedia and Lindblad Expeditions
The main advantage of trading using opposite National CineMedia and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National CineMedia 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.National CineMedia vs. ADS TEC ENERGY PLC | National CineMedia vs. CompoSecure | National CineMedia vs. Dave Warrants | National CineMedia vs. Aurora Innovation |
Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. TUI AG | Lindblad Expeditions vs. Inspirato | Lindblad Expeditions vs. TripAdvisor |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |