Correlation Between Travelzoo and Global X
Can any of the company-specific risk be diversified away by investing in both Travelzoo and Global X 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 Travelzoo and Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Travelzoo and Global X Interest, you can compare the effects of market volatilities on Travelzoo and Global X 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 Travelzoo with a short position of Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelzoo and Global X.
Diversification Opportunities for Travelzoo and Global X
Modest diversification
The 3 months correlation between Travelzoo and Global is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Travelzoo and Global X Interest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Interest and Travelzoo 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 Travelzoo are associated (or correlated) with Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Interest has no effect on the direction of Travelzoo i.e., Travelzoo and Global X go up and down completely randomly.
Pair Corralation between Travelzoo and Global X
Given the investment horizon of 90 days Travelzoo is expected to generate 3.83 times more return on investment than Global X. However, Travelzoo is 3.83 times more volatile than Global X Interest. It trades about 0.03 of its potential returns per unit of risk. Global X Interest is currently generating about -0.16 per unit of risk. If you would invest 2,098 in Travelzoo on November 18, 2024 and sell it today you would earn a total of 24.00 from holding Travelzoo or generate 1.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Travelzoo vs. Global X Interest
Performance |
| Timeline |
| Travelzoo |
| Global X Interest |
Travelzoo and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelzoo and Global X
The main advantage of trading using opposite Travelzoo and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelzoo position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Travelzoo vs. Dmc Global | Travelzoo vs. Air T Inc | Travelzoo vs. Deckers Outdoor | Travelzoo vs. Sonida Senior Living |
| Global X vs. Movano Inc | Global X vs. Grayscale Solana Trust | Global X vs. Travelzoo | Global X vs. Sonida Senior Living |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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