Correlation Between INTER CARS and TUI AG
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By analyzing existing cross correlation between INTER CARS SA and TUI AG, you can compare the effects of market volatilities on INTER CARS and TUI AG 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 INTER CARS with a short position of TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTER CARS and TUI AG.
Diversification Opportunities for INTER CARS and TUI AG
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between INTER and TUI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding INTER CARS SA and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG and INTER CARS 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 INTER CARS SA are associated (or correlated) with TUI AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUI AG has no effect on the direction of INTER CARS i.e., INTER CARS and TUI AG go up and down completely randomly.
Pair Corralation between INTER CARS and TUI AG
Assuming the 90 days horizon INTER CARS SA is expected to generate 0.82 times more return on investment than TUI AG. However, INTER CARS SA is 1.21 times less risky than TUI AG. It trades about 0.03 of its potential returns per unit of risk. TUI AG is currently generating about 0.02 per unit of risk. If you would invest 9,831 in INTER CARS SA on September 12, 2024 and sell it today you would earn a total of 1,929 from holding INTER CARS SA or generate 19.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTER CARS SA vs. TUI AG
Performance |
| Timeline |
| INTER CARS SA |
| TUI AG |
INTER CARS and TUI AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTER CARS and TUI AG
The main advantage of trading using opposite INTER CARS and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTER CARS position performs unexpectedly, TUI AG 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 TUI AG will offset losses from the drop in TUI AG's long position.| INTER CARS vs. Bridgestone | INTER CARS vs. Superior Plus Corp | INTER CARS vs. SIVERS SEMICONDUCTORS AB | INTER CARS vs. Norsk Hydro ASA |
| TUI AG vs. INTER CARS SA | TUI AG vs. Cars Inc | TUI AG vs. Dairy Farm International | TUI AG vs. Sterling Construction |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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