Correlation Between Tuniu Corp and TUI AG
Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and TUI AG 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 TUI AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tuniu Corp and TUI AG, you can compare the effects of market volatilities on Tuniu Corp and TUI AG 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 TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and TUI AG.
Diversification Opportunities for Tuniu Corp and TUI AG
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tuniu and TUI is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Tuniu Corp and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG 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 TUI AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TUI AG has no effect on the direction of Tuniu Corp i.e., Tuniu Corp and TUI AG go up and down completely randomly.
Pair Corralation between Tuniu Corp and TUI AG
Given the investment horizon of 90 days Tuniu Corp is expected to under-perform the TUI AG. In addition to that, Tuniu Corp is 1.17 times more volatile than TUI AG. It trades about -0.17 of its total potential returns per unit of risk. TUI AG is currently generating about -0.05 per unit of volatility. If you would invest 835.00 in TUI AG on August 27, 2024 and sell it today you would lose (30.00) from holding TUI AG or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tuniu Corp vs. TUI AG
Performance |
| Timeline |
| Tuniu Corp |
| TUI AG |
Tuniu Corp and TUI AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tuniu Corp and TUI AG
The main advantage of trading using opposite Tuniu Corp and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, TUI AG 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 TUI AG will offset losses from the drop in TUI AG's long position.| Tuniu Corp vs. Yatra Online | Tuniu Corp vs. Mondee Holdings | Tuniu Corp vs. TripAdvisor | Tuniu Corp vs. Thayer Ventures Acquisition |
| TUI AG vs. Expedia Group | TUI AG vs. Trip Group Ltd | TUI AG vs. Booking Holdings | TUI AG vs. Despegar 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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