Correlation Between Mondee Holdings and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both Mondee Holdings 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 Mondee Holdings and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mondee Holdings and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on Mondee Holdings 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 Mondee Holdings with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mondee Holdings and Lindblad Expeditions.
Diversification Opportunities for Mondee Holdings and Lindblad Expeditions
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Mondee and Lindblad is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Mondee Holdings and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and Mondee Holdings 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 Mondee Holdings 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 Mondee Holdings i.e., Mondee Holdings and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between Mondee Holdings and Lindblad Expeditions
Given the investment horizon of 90 days Mondee Holdings is expected to under-perform the Lindblad Expeditions. In addition to that, Mondee Holdings is 1.29 times more volatile than Lindblad Expeditions Holdings. It trades about -0.05 of its total potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.04 per unit of volatility. If you would invest 835.00 in Lindblad Expeditions Holdings on August 27, 2024 and sell it today you would earn a total of 450.00 from holding Lindblad Expeditions Holdings or generate 53.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mondee Holdings vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| Mondee Holdings |
| Lindblad Expeditions |
Mondee Holdings and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mondee Holdings and Lindblad Expeditions
The main advantage of trading using opposite Mondee Holdings and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mondee Holdings 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.| Mondee Holdings vs. Yatra Online | Mondee Holdings vs. Despegar Corp | Mondee Holdings vs. Lindblad Expeditions Holdings | Mondee Holdings vs. MakeMyTrip Limited |
| 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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