Correlation Between Lindblad Expeditions and PepsiCo
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and PepsiCo 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 PepsiCo 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 PepsiCo, you can compare the effects of market volatilities on Lindblad Expeditions and PepsiCo 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 PepsiCo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and PepsiCo.
Diversification Opportunities for Lindblad Expeditions and PepsiCo
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lindblad and PepsiCo is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and PepsiCo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PepsiCo 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 PepsiCo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PepsiCo has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and PepsiCo go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and PepsiCo
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 3.92 times more return on investment than PepsiCo. However, Lindblad Expeditions is 3.92 times more volatile than PepsiCo. It trades about 0.04 of its potential returns per unit of risk. PepsiCo is currently generating about -0.01 per unit of risk. 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. PepsiCo
Performance |
| Timeline |
| Lindblad Expeditions |
| PepsiCo |
Lindblad Expeditions and PepsiCo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and PepsiCo
The main advantage of trading using opposite Lindblad Expeditions and PepsiCo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, PepsiCo 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 PepsiCo will offset losses from the drop in PepsiCo's long position.| Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited | Lindblad Expeditions vs. Tuniu Corp | Lindblad Expeditions vs. TripAdvisor |
| PepsiCo vs. Coca Cola Consolidated | PepsiCo vs. Monster Beverage Corp | PepsiCo vs. Celsius Holdings | PepsiCo vs. Keurig Dr Pepper |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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