Correlation Between Lindblad Expeditions and Expedia

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

Diversification Opportunities for Lindblad Expeditions and Expedia

0.83

Correlation Coefficient

Lindblad Expeditions  Expedia

Very poor diversification

The 3 months correlation between Lindblad and Expedia is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group 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 Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Expedia go up and down completely randomly.

Pair Corralation between Lindblad Expeditions and Expedia

Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.3 times more return on investment than Expedia. However, Lindblad Expeditions is 1.3 times more volatile than Expedia Group. It trades about 0.16 of its potential returns per unit of risk. Expedia Group is currently generating about 0.07 per unit of risk. If you would invest  912.00  in Lindblad Expeditions Holdings on May 4, 2025 and sell it today you would earn a total of  261.00  from holding Lindblad Expeditions Holdings or generate 28.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.41%
Values	Daily Returns

Lindblad Expeditions Holdings  vs.  Expedia Group

Lindblad Expeditions

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Lindblad Expeditions Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Lindblad Expeditions exhibited solid returns over the last few months and may actually be approaching a breakup point.

Expedia Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Expedia may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Lindblad Expeditions and Expedia

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

The idea behind Lindblad Expeditions Holdings and Expedia Group 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.