Correlation Between Tuniu Corp and New Momentum
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and New Momentum 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 New Momentum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and New Momentum, you can compare the effects of market volatilities on Tuniu Corp and New Momentum 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 New Momentum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and New Momentum.
Diversification Opportunities for Tuniu Corp and New Momentum
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Tuniu and New is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp and New Momentum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New Momentum 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 New Momentum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New Momentum has no effect on the direction of Tuniu Corp i.e., Tuniu Corp and New Momentum go up and down completely randomly.
Pair Corralation between Tuniu Corp and New Momentum
Given the investment horizon of 90 days Tuniu Corp is expected to generate 0.26 times more return on investment than New Momentum. However, Tuniu Corp is 3.84 times less risky than New Momentum. It trades about 0.0 of its potential returns per unit of risk. New Momentum is currently generating about 0.0 per unit of risk. If you would invest 115.00 in Tuniu Corp on September 3, 2024 and sell it today you would lose (1.00) from holding Tuniu Corp or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Tuniu Corp vs. New Momentum
Performance |
| Timeline |
| Tuniu Corp |
| New Momentum |
Tuniu Corp and New Momentum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and New Momentum
The main advantage of trading using opposite Tuniu Corp and New Momentum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, New Momentum 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 New Momentum will offset losses from the drop in New Momentum's long position.| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar Corp |
| New Momentum vs. Booking Holdings | New Momentum vs. TripAdvisor | New Momentum vs. Airbnb Inc | New Momentum vs. Royal Caribbean Cruises |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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