Correlation Between Opera and Tuniu Corp
Can any of the company-specific risk be diversified away by investing in both Opera 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 Opera and Tuniu Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Opera and Tuniu Corp, you can compare the effects of market volatilities on Opera 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 Opera with a short position of Tuniu Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Opera and Tuniu Corp.
Diversification Opportunities for Opera and Tuniu Corp
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Opera and Tuniu is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Opera and Tuniu Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuniu Corp and Opera 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 Opera 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 Opera i.e., Opera and Tuniu Corp go up and down completely randomly.
Pair Corralation between Opera and Tuniu Corp
Given the investment horizon of 90 days Opera is expected to generate 0.89 times more return on investment than Tuniu Corp. However, Opera is 1.13 times less risky than Tuniu Corp. It trades about 0.03 of its potential returns per unit of risk. Tuniu Corp is currently generating about 0.0 per unit of risk. If you would invest 1,708 in Opera on September 1, 2024 and sell it today you would earn a total of 293.00 from holding Opera or generate 17.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Opera vs. Tuniu Corp
Performance |
| Timeline |
| Opera |
| Tuniu Corp |
Opera and Tuniu Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Opera and Tuniu Corp
The main advantage of trading using opposite Opera and Tuniu Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Opera 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.The idea behind Opera and Tuniu Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |