Correlation Between Lindblad Expeditions and Everi Holdings

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

Diversification Opportunities for Lindblad Expeditions and Everi Holdings

0.5

Correlation Coefficient

Lindblad Expeditions  Everi Holdings

Very weak diversification

The 3 months correlation between Lindblad and Everi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Everi Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everi Holdings 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 Everi Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everi Holdings has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Everi Holdings go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Everi Holdings

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Everi Holdings. In addition to that, Lindblad Expeditions is 1.1 times more volatile than Everi Holdings. It trades about -0.07 of its total potential returns per unit of risk. Everi Holdings is currently generating about -0.02 per unit of volatility. If you would invest  889.00  in Everi Holdings on March 14, 2024 and sell it today you would lose (52.00) from holding Everi Holdings or give up 5.85% 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.  Everi Holdings

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.

Everi Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everi Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Everi Holdings is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Lindblad Expeditions and Everi Holdings

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

The idea behind Lindblad Expeditions Holdings and Everi Holdings 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.