Correlation Between TUI AG and TRAVEL +
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By analyzing existing cross correlation between TUI AG and TRAVEL LEISURE DL 01, you can compare the effects of market volatilities on TUI AG and TRAVEL + 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 TUI AG with a short position of TRAVEL +. Check out your portfolio center. Please also check ongoing floating volatility patterns of TUI AG and TRAVEL +.
Diversification Opportunities for TUI AG and TRAVEL +
Very weak diversification
The 3 months correlation between TUI and TRAVEL is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding TUI AG and TRAVEL LEISURE DL 01 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVEL LEISURE DL and TUI AG 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 TUI AG are associated (or correlated) with TRAVEL +. 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 DL has no effect on the direction of TUI AG i.e., TUI AG and TRAVEL + go up and down completely randomly.
Pair Corralation between TUI AG and TRAVEL +
Assuming the 90 days trading horizon TUI AG is expected to under-perform the TRAVEL +. In addition to that, TUI AG is 1.91 times more volatile than TRAVEL LEISURE DL 01. It trades about -0.12 of its total potential returns per unit of risk. TRAVEL LEISURE DL 01 is currently generating about 0.23 per unit of volatility. If you would invest 4,860 in TRAVEL LEISURE DL 01 on October 23, 2024 and sell it today you would earn a total of 190.00 from holding TRAVEL LEISURE DL 01 or generate 3.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
TUI AG vs. TRAVEL LEISURE DL 01
Performance |
| Timeline |
| TUI AG |
| TRAVEL LEISURE DL |
TUI AG and TRAVEL + Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TUI AG and TRAVEL +
The main advantage of trading using opposite TUI AG and TRAVEL + positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TUI AG position performs unexpectedly, TRAVEL + 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 + will offset losses from the drop in TRAVEL +'s long position.| TUI AG vs. H2O Retailing | TUI AG vs. Retail Estates NV | TUI AG vs. SOLSTAD OFFSHORE NK | TUI AG vs. Solstad Offshore ASA |
| TRAVEL + vs. TRIPCOM GROUP DL 00125 | TRAVEL + vs. TUI AG | TRAVEL + vs. MakeMyTrip Limited | TRAVEL + vs. FOSTOURGRP EO 0001 |
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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