Correlation Between TRIPCOM GROUP and TUI AG
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By analyzing existing cross correlation between TRIPCOM GROUP DL 00125 and TUI AG, you can compare the effects of market volatilities on TRIPCOM GROUP 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 TRIPCOM GROUP with a short position of TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRIPCOM GROUP and TUI AG.
Diversification Opportunities for TRIPCOM GROUP and TUI AG
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TRIPCOM and TUI is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding TRIPCOM GROUP DL 00125 and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG and TRIPCOM GROUP 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 TRIPCOM GROUP DL 00125 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 TRIPCOM GROUP i.e., TRIPCOM GROUP and TUI AG go up and down completely randomly.
Pair Corralation between TRIPCOM GROUP and TUI AG
Assuming the 90 days trading horizon TRIPCOM GROUP DL 00125 is expected to generate 1.45 times more return on investment than TUI AG. However, TRIPCOM GROUP is 1.45 times more volatile than TUI AG. It trades about 0.12 of its potential returns per unit of risk. TUI AG is currently generating about 0.15 per unit of risk. If you would invest 6,076 in TRIPCOM GROUP DL 00125 on September 12, 2024 and sell it today you would earn a total of 486.00 from holding TRIPCOM GROUP DL 00125 or generate 8.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRIPCOM GROUP DL 00125 vs. TUI AG
Performance |
| Timeline |
| TRIPCOM GROUP DL |
| TUI AG |
TRIPCOM GROUP and TUI AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRIPCOM GROUP and TUI AG
The main advantage of trading using opposite TRIPCOM GROUP and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRIPCOM GROUP 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.| TRIPCOM GROUP vs. TRAVEL LEISURE DL 01 | TRIPCOM GROUP vs. TripAdvisor | TRIPCOM GROUP vs. TRAINLINE PLC LS | TRIPCOM GROUP vs. Superior Plus Corp |
| 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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