Correlation Between Lindblad Expeditions and Sun Country
Can any of the company-specific risk be diversified away by investing in both Lindblad Expeditions and Sun Country 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 Sun Country 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 Sun Country Airlines, you can compare the effects of market volatilities on Lindblad Expeditions and Sun Country 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 Sun Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lindblad Expeditions and Sun Country.
Diversification Opportunities for Lindblad Expeditions and Sun Country
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lindblad and Sun is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Lindblad Expeditions Holdings and Sun Country Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Country Airlines 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 Sun Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Country Airlines has no effect on the direction of Lindblad Expeditions i.e., Lindblad Expeditions and Sun Country go up and down completely randomly.
Pair Corralation between Lindblad Expeditions and Sun Country
Given the investment horizon of 90 days Lindblad Expeditions Holdings is expected to generate 1.25 times more return on investment than Sun Country. However, Lindblad Expeditions is 1.25 times more volatile than Sun Country Airlines. It trades about 0.03 of its potential returns per unit of risk. Sun Country Airlines is currently generating about -0.02 per unit of risk. If you would invest 1,096 in Lindblad Expeditions Holdings on August 28, 2024 and sell it today you would earn a total of 186.00 from holding Lindblad Expeditions Holdings or generate 16.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lindblad Expeditions Holdings vs. Sun Country Airlines
Performance |
| Timeline |
| Lindblad Expeditions |
| Sun Country Airlines |
Lindblad Expeditions and Sun Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lindblad Expeditions and Sun Country
The main advantage of trading using opposite Lindblad Expeditions and Sun Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lindblad Expeditions position performs unexpectedly, Sun Country 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 Sun Country will offset losses from the drop in Sun Country's long position.| Lindblad Expeditions vs. Yatra Online | Lindblad Expeditions vs. Despegar Corp | Lindblad Expeditions vs. Mondee Holdings | Lindblad Expeditions vs. MakeMyTrip Limited |
| Sun Country vs. Spirit Airlines | Sun Country vs. JetBlue Airways Corp | Sun Country vs. Allegiant Travel | Sun Country vs. Copa Holdings SA |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |