Correlation Between Lindblad Expeditions and Cebu Air
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Cebu Air 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 Cebu Air 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 Cebu Air ADR, you can compare the effects of market volatilities on Lindblad Expeditions and Cebu Air 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 Cebu Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Cebu Air.
Diversification Opportunities for Lindblad Expeditions and Cebu Air
-0.94 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lindblad and Cebu is -0.94. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Cebu Air ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cebu Air ADR 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 Cebu Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cebu Air ADR has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Cebu Air go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Cebu Air
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 2.22 times more return on investment than Cebu Air. However, Lindblad Expeditions is 2.22 times more volatile than Cebu Air ADR. It trades about 0.18 of its potential returns per unit of risk. Cebu Air ADR is currently generating about -0.15 per unit of risk. If you would invest 930.00 in Lindblad Expeditions Holdings on August 28, 2024 and sell it today you would earn a total of 352.00 from holding Lindblad Expeditions Holdings or generate 37.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Cebu Air ADR
Performance |
| Timeline |
| Lindblad Expeditions |
| Cebu Air ADR |
Lindblad Expeditions and Cebu Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Cebu Air
The main advantage of trading using opposite Lindblad Expeditions and Cebu Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Cebu Air 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 Cebu Air will offset losses from the drop in Cebu Air's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Cebu Air vs. Marfrig Global Foods | Cebu Air vs. Grocery Outlet Holding | Cebu Air vs. Dalata Hotel Group | Cebu Air vs. Bt Brands |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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