Correlation Between TripAdvisor and Lindblad Expeditions
Can any of the company-specific risk be diversified away by investing in both TripAdvisor 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 TripAdvisor and Lindblad Expeditions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TripAdvisor and Lindblad Expeditions Holdings, you can compare the effects of market volatilities on TripAdvisor 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 TripAdvisor with a short position of Lindblad Expeditions. Check out your portfolio center. Please also check ongoing floating volatility patterns of TripAdvisor and Lindblad Expeditions.
Diversification Opportunities for TripAdvisor and Lindblad Expeditions
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between TripAdvisor and Lindblad is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding TripAdvisor and Lindblad Expeditions Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lindblad Expeditions and TripAdvisor 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 TripAdvisor 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 TripAdvisor i.e., TripAdvisor and Lindblad Expeditions go up and down completely randomly.
Pair Corralation between TripAdvisor and Lindblad Expeditions
Assuming the 90 days horizon TripAdvisor is expected to generate 20.49 times less return on investment than Lindblad Expeditions. But when comparing it to its historical volatility, TripAdvisor is 1.39 times less risky than Lindblad Expeditions. It trades about 0.0 of its potential returns per unit of risk. Lindblad Expeditions Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 675.00 in Lindblad Expeditions Holdings on September 12, 2024 and sell it today you would earn a total of 585.00 from holding Lindblad Expeditions Holdings or generate 86.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TripAdvisor vs. Lindblad Expeditions Holdings
Performance |
| Timeline |
| TripAdvisor |
| Lindblad Expeditions |
TripAdvisor and Lindblad Expeditions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TripAdvisor and Lindblad Expeditions
The main advantage of trading using opposite TripAdvisor and Lindblad Expeditions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TripAdvisor 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.| TripAdvisor vs. EIDESVIK OFFSHORE NK | TripAdvisor vs. SOLSTAD OFFSHORE NK | TripAdvisor vs. MagnaChip Semiconductor Corp | TripAdvisor vs. ELMOS SEMICONDUCTOR |
| Lindblad Expeditions vs. TRAVEL LEISURE DL 01 | Lindblad Expeditions vs. TripAdvisor | Lindblad Expeditions vs. TRAINLINE PLC LS | Lindblad Expeditions vs. Superior Plus Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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