Correlation Between TRIPCOM GROUP and Lindblad Expeditions

Can any of the company-specific risk be diversified away by investing in both TRIPCOM GROUP 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 TRIPCOM GROUP and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TRIPCOM GROUP DL 00125 and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on TRIPCOM GROUP 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 TRIPCOM GROUP with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRIPCOM GROUP and Lindblad Expeditions.

Diversification Opportunities for TRIPCOM GROUP and Lindblad Expeditions

-0.21

Correlation Coefficient

TRIPCOM GROUP  Lindblad Expeditions

Very good diversification

The 3 months correlation between TRIPCOM and Lindblad is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TRIPCOM GROUP DL 00125 and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and TRIPCOM GROUP 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 TRIPCOM GROUP DL 00125 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 TRIPCOM GROUP i.e., TRIPCOM GROUP and Lindblad Expeditions go up and down completely randomly.

Pair Corralation between TRIPCOM GROUP and Lindblad Expeditions

Assuming the 90 days trading horizon TRIPCOM GROUP DL 00125 is expected to under-perform the Lindblad Expeditions. In addition to that, TRIPCOM GROUP is 1.0 times more volatile than Lindblad Expeditions Holdings. It trades about -0.04 of its total potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.08 per unit of volatility. If you would invest  920.00  in Lindblad Expeditions Holdings on May 11, 2025 and sell it today you would earn a total of  120.00  from holding Lindblad Expeditions Holdings or generate 13.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

TRIPCOM GROUP DL 00125  vs.  Lindblad Expeditions Holdings

TRIPCOM GROUP DL

Risk-Adjusted Performance

Weakest

Over the last 90 days TRIPCOM GROUP DL 00125 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Lindblad Expeditions

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady basic indicators, Lindblad Expeditions reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with TRIPCOM GROUP and Lindblad Expeditions

The main advantage of trading using opposite TRIPCOM GROUP and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRIPCOM GROUP 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 TRIPCOM GROUP DL 00125 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.

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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.