Correlation Between Compania Cervecerias and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Compania Cervecerias 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 Compania Cervecerias and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Compania Cervecerias Unidas and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Compania Cervecerias 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 Compania Cervecerias with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Compania Cervecerias and Lindblad Expeditions.
Diversification Opportunities for Compania Cervecerias and Lindblad Expeditions
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Compania and Lindblad is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Compania Cervecerias Unidas and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Compania Cervecerias 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 Compania Cervecerias Unidas 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 Compania Cervecerias i.e., Compania Cervecerias and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Compania Cervecerias and Lindblad Expeditions
Considering the 90-day investment horizon Compania Cervecerias Unidas is expected to under-perform the Lindblad Expeditions. But the stock apears to be less risky and, when comparing its historical volatility, Compania Cervecerias Unidas is 2.37 times less risky than Lindblad Expeditions. The stock trades about -0.04 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,042 in Lindblad Expeditions Holdings on September 2, 2024 and sell it today you would earn a total of 284.00 from holding Lindblad Expeditions Holdings or generate 27.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Compania Cervecerias Unidas vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Compania Cervecerias |
| Lindblad Expeditions |
Compania Cervecerias and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Compania Cervecerias and Lindblad Expeditions
The main advantage of trading using opposite Compania Cervecerias and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Compania Cervecerias 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.| Compania Cervecerias vs. Boston Beer | Compania Cervecerias vs. Molson Coors Beverage | Compania Cervecerias vs. Ambev SA ADR | Compania Cervecerias vs. Molson Coors Brewing |
| Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp | Lindblad Expeditions vs. TripAdvisor |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |