Correlation Between Cebu Air and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Cebu Air 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 Cebu Air and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cebu Air ADR and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Cebu Air 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 Cebu Air with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cebu Air and Lindblad Expeditions.
Diversification Opportunities for Cebu Air and Lindblad Expeditions
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cebu and Lindblad is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Cebu Air ADR and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Cebu Air 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 Cebu Air ADR 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 Cebu Air i.e., Cebu Air and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Cebu Air and Lindblad Expeditions
Assuming the 90 days horizon Cebu Air ADR is expected to under-perform the Lindblad Expeditions. But the pink sheet apears to be less risky and, when comparing its historical volatility, Cebu Air ADR is 2.08 times less risky than Lindblad Expeditions. The pink sheet trades about -0.22 of its potential returns per unit of risk. The Lindblad Expeditions Holdings is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 991.00 in Lindblad Expeditions Holdings on August 28, 2024 and sell it today you would earn a total of 291.00 from holding Lindblad Expeditions Holdings or generate 29.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Cebu Air ADR vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Cebu Air ADR |
| Lindblad Expeditions |
Cebu Air and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cebu Air and Lindblad Expeditions
The main advantage of trading using opposite Cebu Air and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cebu Air 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.| Cebu Air vs. Marfrig Global Foods | Cebu Air vs. Grocery Outlet Holding | Cebu Air vs. Dalata Hotel Group | Cebu Air vs. Bt Brands |
| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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