Correlation Between Booking Holdings and SosTravel SPA
Can any of the company-specific risk be diversified away by investing in both Booking Holdings and SosTravel SPA 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 Booking Holdings and SosTravel SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Booking Holdings and SosTravel SPA, you can compare the effects of market volatilities on Booking Holdings and SosTravel SPA 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 Booking Holdings with a short position of SosTravel SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Booking Holdings and SosTravel SPA.
Diversification Opportunities for Booking Holdings and SosTravel SPA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Booking and SosTravel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Booking Holdings and SosTravel SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SosTravel SPA and Booking 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 Booking Holdings are associated (or correlated) with SosTravel SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SosTravel SPA has no effect on the direction of Booking Holdings i.e., Booking Holdings and SosTravel SPA go up and down completely randomly.
Pair Corralation between Booking Holdings and SosTravel SPA
If you would invest 446,393 in Booking Holdings on August 31, 2024 and sell it today you would earn a total of 75,922 from holding Booking Holdings or generate 17.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Booking Holdings vs. SosTravel SPA
Performance |
| Timeline |
| Booking Holdings |
| SosTravel SPA |
Booking Holdings and SosTravel SPA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Booking Holdings and SosTravel SPA
The main advantage of trading using opposite Booking Holdings and SosTravel SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Booking Holdings position performs unexpectedly, SosTravel SPA 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 SosTravel SPA will offset losses from the drop in SosTravel SPA's long position.| Booking Holdings vs. TripAdvisor | Booking Holdings vs. Airbnb Inc | Booking Holdings vs. Royal Caribbean Cruises | Booking Holdings vs. Norwegian Cruise Line |
| SosTravel SPA vs. Legacy Education | SosTravel SPA vs. Apple Inc | SosTravel SPA vs. NVIDIA | SosTravel SPA vs. Microsoft |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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