Correlation Between TUI AG and SosTravel SPA

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both TUI AG and SosTravel SPA 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 TUI AG and SosTravel SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TUI AG and SosTravel SPA, you can compare the effects of market volatilities on TUI AG and SosTravel SPA 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 SosTravel SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of TUI AG and SosTravel SPA.

Diversification Opportunities for TUI AG and SosTravel SPA

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between TUI and SosTravel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TUI AG and SosTravel SPA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SosTravel SPA 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 SosTravel SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SosTravel SPA has no effect on the direction of TUI AG i.e., TUI AG and SosTravel SPA go up and down completely randomly.

Pair Corralation between TUI AG and SosTravel SPA

If you would invest  111.00  in SosTravel SPA on August 31, 2024 and sell it today you would earn a total of  0.00  from holding SosTravel SPA or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

TUI AG  vs.  SosTravel SPA

 Performance 
       Timeline  
TUI AG 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in TUI AG are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical and fundamental indicators, TUI AG reported solid returns over the last few months and may actually be approaching a breakup point.
SosTravel SPA 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days SosTravel SPA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, SosTravel SPA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

TUI AG and SosTravel SPA Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with TUI AG and SosTravel SPA

The main advantage of trading using opposite TUI AG and SosTravel SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TUI AG position performs unexpectedly, SosTravel SPA 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 SosTravel SPA will offset losses from the drop in SosTravel SPA's long position.
TUI AG vs. Expedia Group
TUI AG vs. Trip Group Ltd
TUI AG vs. Booking Holdings
TUI AG vs. Despegar Corp
The idea behind TUI AG and SosTravel SPA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
SosTravel SPA vs. Legacy Education
SosTravel SPA vs. Apple Inc
SosTravel SPA vs. NVIDIA
SosTravel SPA vs. Microsoft
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

Other Complementary Tools

Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Bonds Directory
Find actively traded corporate debentures issued by US companies
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY