Correlation Between National Instruments and Lindblad Expeditions

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

Diversification Opportunities for National Instruments and Lindblad Expeditions

-0.81
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between National and Lindblad is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding National Instruments 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 Instruments 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 Instruments 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 Instruments i.e., National Instruments and Lindblad Expeditions go up and down completely randomly.

Pair Corralation between National Instruments and Lindblad Expeditions

If you would invest  5,998  in National Instruments on December 29, 2023 and sell it today you would earn a total of  0.00  from holding National Instruments or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy2.38%
ValuesDaily Returns

National Instruments  vs.  Lindblad Expeditions Holdings

 Performance 
       Timeline  
National Instruments 

Risk-Adjusted Performance

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

Risk-Adjusted Performance

0 of 100

 
Low
 
High
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 inconsistent performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in April 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

National Instruments and Lindblad Expeditions Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with National Instruments and Lindblad Expeditions

The main advantage of trading using opposite National Instruments and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if National Instruments 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.
The idea behind National Instruments and Lindblad Expeditions 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.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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