Correlation Between Tuniu Corp and Inspirato
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and Inspirato 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 Inspirato into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and Inspirato, you can compare the effects of market volatilities on Tuniu Corp and Inspirato 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 Inspirato. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and Inspirato.
Diversification Opportunities for Tuniu Corp and Inspirato
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tuniu and Inspirato is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp and Inspirato in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inspirato 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 Inspirato. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inspirato has no effect on the direction of Tuniu Corp i.e., Tuniu Corp and Inspirato go up and down completely randomly.
Pair Corralation between Tuniu Corp and Inspirato
Given the investment horizon of 90 days Tuniu Corp is expected to under-perform the Inspirato. But the stock apears to be less risky and, when comparing its historical volatility, Tuniu Corp is 1.21 times less risky than Inspirato. The stock trades about -0.06 of its potential returns per unit of risk. The Inspirato is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 379.00 in Inspirato on August 31, 2024 and sell it today you would lose (6.00) from holding Inspirato or give up 1.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuniu Corp vs. Inspirato
Performance |
| Timeline |
| Tuniu Corp |
| Inspirato |
Tuniu Corp and Inspirato Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and Inspirato
The main advantage of trading using opposite Tuniu Corp and Inspirato positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, Inspirato 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 Inspirato will offset losses from the drop in Inspirato's long position.| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar Corp |
| Inspirato vs. Trip Group Ltd | Inspirato vs. Yatra Online | Inspirato vs. Travel Leisure Co | Inspirato vs. Mondee Holdings |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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