Correlation Between Tuniu Corp and Amadeus IT
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and Amadeus IT 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 Tuniu Corp and Amadeus IT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and Amadeus IT Group, you can compare the effects of market volatilities on Tuniu Corp and Amadeus IT 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 Tuniu Corp with a short position of Amadeus IT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and Amadeus IT.
Diversification Opportunities for Tuniu Corp and Amadeus IT
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tuniu and Amadeus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp and Amadeus IT Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amadeus IT Group and Tuniu Corp 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 Tuniu Corp are associated (or correlated) with Amadeus IT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amadeus IT Group has no effect on the direction of Tuniu Corp i.e., Tuniu Corp and Amadeus IT go up and down completely randomly.
Pair Corralation between Tuniu Corp and Amadeus IT
Given the investment horizon of 90 days Tuniu Corp is expected to under-perform the Amadeus IT. In addition to that, Tuniu Corp is 1.01 times more volatile than Amadeus IT Group. It trades about -0.17 of its total potential returns per unit of risk. Amadeus IT Group is currently generating about -0.11 per unit of volatility. If you would invest 7,390 in Amadeus IT Group on August 27, 2024 and sell it today you would lose (585.00) from holding Amadeus IT Group or give up 7.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuniu Corp vs. Amadeus IT Group
Performance |
| Timeline |
| Tuniu Corp |
| Amadeus IT Group |
Tuniu Corp and Amadeus IT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and Amadeus IT
The main advantage of trading using opposite Tuniu Corp and Amadeus IT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, Amadeus IT 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 Amadeus IT will offset losses from the drop in Amadeus IT's long position.| Tuniu Corp vs. Yatra Online | Tuniu Corp vs. Mondee Holdings | Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. Thayer Ventures Acquisition |
| Amadeus IT vs. SosTravel SPA | Amadeus IT vs. Arma Services | Amadeus IT vs. Transat AT | Amadeus IT vs. Airbnb Inc |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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