Correlation Between Tuniu Corp and Marriott International
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and Marriott International 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 Marriott International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and Marriott International, you can compare the effects of market volatilities on Tuniu Corp and Marriott International 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 Marriott International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and Marriott International.
Diversification Opportunities for Tuniu Corp and Marriott International
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tuniu and Marriott is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp and Marriott International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marriott International 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 Marriott International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marriott International has no effect on the direction of Tuniu Corp i.e., Tuniu Corp and Marriott International go up and down completely randomly.
Pair Corralation between Tuniu Corp and Marriott International
Given the investment horizon of 90 days Tuniu Corp is expected to generate 8.49 times less return on investment than Marriott International. In addition to that, Tuniu Corp is 3.55 times more volatile than Marriott International. It trades about 0.0 of its total potential returns per unit of risk. Marriott International is currently generating about 0.1 per unit of volatility. If you would invest 14,536 in Marriott International on September 14, 2024 and sell it today you would earn a total of 14,169 from holding Marriott International or generate 97.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Tuniu Corp vs. Marriott International
Performance |
| Timeline |
| Tuniu Corp |
| Marriott International |
Tuniu Corp and Marriott International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and Marriott International
The main advantage of trading using opposite Tuniu Corp and Marriott International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, Marriott International 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 Marriott International will offset losses from the drop in Marriott International's long position.| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar Corp |
| Marriott International vs. Yatra Online | Marriott International vs. Mondee Holdings | Marriott International vs. MakeMyTrip Limited | Marriott International vs. Tuniu 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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