Correlation Between Air Canada and TUI AG
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By analyzing existing cross correlation between Air Canada and TUI AG, you can compare the effects of market volatilities on Air Canada 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 Air Canada with a short position of TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Air Canada and TUI AG.
Diversification Opportunities for Air Canada and TUI AG
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Air and TUI is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Air Canada and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG and Air Canada 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 Air Canada 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 Air Canada i.e., Air Canada and TUI AG go up and down completely randomly.
Pair Corralation between Air Canada and TUI AG
Assuming the 90 days trading horizon Air Canada is expected to under-perform the TUI AG. But the stock apears to be less risky and, when comparing its historical volatility, Air Canada is 1.17 times less risky than TUI AG. The stock trades about -0.28 of its potential returns per unit of risk. The TUI AG is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 756.00 in TUI AG on December 1, 2024 and sell it today you would lose (56.00) from holding TUI AG or give up 7.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Air Canada vs. TUI AG
Performance |
Timeline |
Air Canada |
TUI AG |
Air Canada and TUI AG Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Air Canada and TUI AG
The main advantage of trading using opposite Air Canada and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Air Canada 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.Air Canada vs. China Resources Beer | Air Canada vs. Luckin Coffee | Air Canada vs. Check Point Software | Air Canada vs. SAN MIGUEL BREWERY |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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