Correlation Between Lindblad Expeditions and Brunswick
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Brunswick 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 Brunswick 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 Brunswick, you can compare the effects of market volatilities on Lindblad Expeditions and Brunswick 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 Brunswick. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Brunswick.
Diversification Opportunities for Lindblad Expeditions and Brunswick
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lindblad and Brunswick is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Brunswick in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brunswick 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 Brunswick. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brunswick has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Brunswick go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Brunswick
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to under-perform the Brunswick. In addition to that, Lindblad Expeditions is 1.64 times more volatile than Brunswick. It trades about -0.02 of its total potential returns per unit of risk. Brunswick is currently generating about 0.16 per unit of volatility. If you would invest 8,475 in Brunswick on December 29, 2023 and sell it today you would earn a total of 1,096 from holding Brunswick or generate 12.93% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lindblad Expeditions Holdings vs. Brunswick
Performance |
Timeline |
Lindblad Expeditions |
Brunswick |
Lindblad Expeditions and Brunswick Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lindblad Expeditions and Brunswick
The main advantage of trading using opposite Lindblad Expeditions and Brunswick positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Brunswick 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 Brunswick will offset losses from the drop in Brunswick's long position.Lindblad Expeditions vs. Monarch Casino Resort | Lindblad Expeditions vs. Biglari Holdings | Lindblad Expeditions vs. Smart Share Global | Lindblad Expeditions vs. Sweetgreen |
Brunswick vs. Ralph Lauren Corp | Brunswick vs. Under Armour C | Brunswick vs. Dogness International Corp | Brunswick vs. The Singing Machine |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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