Correlation Between Tuniu Corp and Sabre

Can any of the company-specific risk be diversified away by investing in both Tuniu Corp and Sabre 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 Tuniu Corp and Sabre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tuniu Corp and Sabre, you can compare the effects of market volatilities on Tuniu Corp and Sabre 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 Tuniu Corp with a short position of Sabre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tuniu Corp and Sabre.

Diversification Opportunities for Tuniu Corp and Sabre

0.0

Correlation Coefficient

Tuniu Corp  Sabre

Pay attention - limited upside

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

Pair Corralation between Tuniu Corp and Sabre

If you would invest  93.00  in Tuniu Corp on December 28, 2024 and sell it today you would earn a total of  15.00  from holding Tuniu Corp or generate 16.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tuniu Corp  vs.  Sabre

Tuniu Corp

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tuniu Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Tuniu Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Sabre

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sabre has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Sabre is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Tuniu Corp and Sabre

The main advantage of trading using opposite Tuniu Corp and Sabre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tuniu Corp position performs unexpectedly, Sabre 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 Sabre will offset losses from the drop in Sabre's long position.

The idea behind Tuniu Corp and Sabre 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.

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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.