Correlation Between TRAVEL + and TUI AG
Specify exactly 2 symbols:
By analyzing existing cross correlation between TRAVEL LEISURE DL 01 and TUI AG, you can compare the effects of market volatilities on TRAVEL + 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 TRAVEL + with a short position of TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVEL + and TUI AG.
Diversification Opportunities for TRAVEL + and TUI AG
Poor diversification
The 3 months correlation between TRAVEL and TUI is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding TRAVEL LEISURE DL 01 and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG and TRAVEL + 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 TRAVEL LEISURE DL 01 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 TRAVEL + i.e., TRAVEL + and TUI AG go up and down completely randomly.
Pair Corralation between TRAVEL + and TUI AG
Assuming the 90 days trading horizon TRAVEL LEISURE DL 01 is expected to generate 0.75 times more return on investment than TUI AG. However, TRAVEL LEISURE DL 01 is 1.33 times less risky than TUI AG. It trades about 0.06 of its potential returns per unit of risk. TUI AG is currently generating about 0.0 per unit of risk. If you would invest 3,246 in TRAVEL LEISURE DL 01 on September 3, 2024 and sell it today you would earn a total of 2,004 from holding TRAVEL LEISURE DL 01 or generate 61.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRAVEL LEISURE DL 01 vs. TUI AG
Performance |
| Timeline |
| TRAVEL LEISURE DL |
| TUI AG |
TRAVEL + and TUI AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAVEL + and TUI AG
The main advantage of trading using opposite TRAVEL + and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVEL + 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.| TRAVEL + vs. TRIPCOM GROUP DL 00125 | TRAVEL + vs. TUI AG | TRAVEL + vs. TripAdvisor | TRAVEL + vs. TRAINLINE PLC LS |
| TUI AG vs. TIANDE CHEMICAL | TUI AG vs. Mitsubishi Gas Chemical | TUI AG vs. NISSAN CHEMICAL IND | TUI AG vs. Soken Chemical Engineering |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes |