Correlation Between Phoenix New and Tuniu Corp
Can any of the company-specific risk be diversified away by investing in both Phoenix New 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 Phoenix New and Tuniu Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Phoenix New Media and Tuniu Corp, you can compare the effects of market volatilities on Phoenix New 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 Phoenix New with a short position of Tuniu Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Phoenix New and Tuniu Corp.
Diversification Opportunities for Phoenix New and Tuniu Corp
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Phoenix and Tuniu is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Phoenix New Media and Tuniu Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuniu Corp and Phoenix New 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 Phoenix New Media 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 Phoenix New i.e., Phoenix New and Tuniu Corp go up and down completely randomly.
Pair Corralation between Phoenix New and Tuniu Corp
Given the investment horizon of 90 days Phoenix New Media is expected to generate 1.32 times more return on investment than Tuniu Corp. However, Phoenix New is 1.32 times more volatile than Tuniu Corp. It trades about 0.04 of its potential returns per unit of risk. Tuniu Corp is currently generating about -0.01 per unit of risk. If you would invest 191.00 in Phoenix New Media on August 28, 2024 and sell it today you would earn a total of 72.00 from holding Phoenix New Media or generate 37.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Phoenix New Media vs. Tuniu Corp
Performance |
| Timeline |
| Phoenix New Media |
| Tuniu Corp |
Phoenix New and Tuniu Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Phoenix New and Tuniu Corp
The main advantage of trading using opposite Phoenix New and Tuniu Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Phoenix New 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.| Phoenix New vs. Alphabet Inc Class C | Phoenix New vs. Twilio Inc | Phoenix New vs. Snap Inc | Phoenix New vs. Baidu Inc |
| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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