Correlation Between Airbnb and Tuniu Corp
Can any of the company-specific risk be diversified away by investing in both Airbnb and Tuniu Corp 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 Airbnb and Tuniu Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbnb Inc and Tuniu Corp, you can compare the effects of market volatilities on Airbnb and Tuniu Corp 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 Airbnb with a short position of Tuniu Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbnb and Tuniu Corp.
Diversification Opportunities for Airbnb and Tuniu Corp
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Airbnb and Tuniu is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Airbnb Inc and Tuniu Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuniu Corp and Airbnb 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 Airbnb Inc are associated (or correlated) with Tuniu Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tuniu Corp has no effect on the direction of Airbnb i.e., Airbnb and Tuniu Corp go up and down completely randomly.
Pair Corralation between Airbnb and Tuniu Corp
Given the investment horizon of 90 days Airbnb is expected to generate 2.27 times less return on investment than Tuniu Corp. But when comparing it to its historical volatility, Airbnb Inc is 3.53 times less risky than Tuniu Corp. It trades about 0.1 of its potential returns per unit of risk. Tuniu Corp is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 91.00 in Tuniu Corp on August 27, 2024 and sell it today you would earn a total of 11.00 from holding Tuniu Corp or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbnb Inc vs. Tuniu Corp
Performance |
| Timeline |
| Airbnb Inc |
| Tuniu Corp |
Airbnb and Tuniu Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbnb and Tuniu Corp
The main advantage of trading using opposite Airbnb and Tuniu Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbnb position performs unexpectedly, Tuniu Corp 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 Tuniu Corp will offset losses from the drop in Tuniu Corp's long position.| Airbnb vs. Norwegian Cruise Line | Airbnb vs. Royal Caribbean Cruises | Airbnb vs. Expedia Group | Airbnb vs. Booking Holdings |
| Tuniu Corp vs. Yatra Online | Tuniu Corp vs. Mondee Holdings | Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. Thayer Ventures Acquisition |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Global Correlations Find global opportunities by holding instruments from different markets |