Correlation Between Travel Leisure and Tuniu Corp
Can any of the company-specific risk be diversified away by investing in both Travel Leisure 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 Travel Leisure and Tuniu Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Travel Leisure Co and Tuniu Corp, you can compare the effects of market volatilities on Travel Leisure 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 Travel Leisure with a short position of Tuniu Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travel Leisure and Tuniu Corp.
Diversification Opportunities for Travel Leisure and Tuniu Corp
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travel and Tuniu is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Travel Leisure Co and Tuniu Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tuniu Corp and Travel Leisure 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 Travel Leisure Co 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 Travel Leisure i.e., Travel Leisure and Tuniu Corp go up and down completely randomly.
Pair Corralation between Travel Leisure and Tuniu Corp
Considering the 90-day investment horizon Travel Leisure Co is expected to generate 0.61 times more return on investment than Tuniu Corp. However, Travel Leisure Co is 1.65 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 -0.01 per unit of risk. If you would invest 5,097 in Travel Leisure Co on October 20, 2024 and sell it today you would earn a total of 126.00 from holding Travel Leisure Co or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Travel Leisure Co vs. Tuniu Corp
Performance |
| Timeline |
| Travel Leisure |
| Tuniu Corp |
Travel Leisure and Tuniu Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travel Leisure and Tuniu Corp
The main advantage of trading using opposite Travel Leisure and Tuniu Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travel Leisure 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.| Travel Leisure vs. Yatra Online | Travel Leisure vs. Despegar Corp | Travel Leisure vs. Lindblad Expeditions Holdings | Travel Leisure vs. Expedia Group |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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