Correlation Between Tuniu Corp and Travel Leisure
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and Travel Leisure 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 Travel Leisure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and Travel Leisure Co, you can compare the effects of market volatilities on Tuniu Corp and Travel Leisure 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 Travel Leisure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and Travel Leisure.
Diversification Opportunities for Tuniu Corp and Travel Leisure
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tuniu and Travel is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp and Travel Leisure Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Travel Leisure 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 Travel Leisure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Travel Leisure has no effect on the direction of Tuniu Corp i.e., Tuniu Corp and Travel Leisure go up and down completely randomly.
Pair Corralation between Tuniu Corp and Travel Leisure
Given the investment horizon of 90 days Tuniu Corp is expected to under-perform the Travel Leisure. In addition to that, Tuniu Corp is 2.07 times more volatile than Travel Leisure Co. It trades about -0.01 of its total potential returns per unit of risk. Travel Leisure Co is currently generating about 0.36 per unit of volatility. If you would invest 4,876 in Travel Leisure Co on August 30, 2024 and sell it today you would earn a total of 662.00 from holding Travel Leisure Co or generate 13.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuniu Corp vs. Travel Leisure Co
Performance |
| Timeline |
| Tuniu Corp |
| Travel Leisure |
Tuniu Corp and Travel Leisure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and Travel Leisure
The main advantage of trading using opposite Tuniu Corp and Travel Leisure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, Travel Leisure 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 Travel Leisure will offset losses from the drop in Travel Leisure's long position.| Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. MakeMyTrip Limited | Tuniu Corp vs. Booking Holdings | Tuniu Corp vs. Despegar Corp |
| Travel Leisure vs. Yatra Online | Travel Leisure vs. Despegar Corp | Travel Leisure vs. Lindblad Expeditions Holdings | Travel Leisure 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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