Correlation Between Airbnb and TUI AG
Can any of the company-specific risk be diversified away by investing in both Airbnb and TUI AG 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 Airbnb and TUI AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbnb Inc and TUI AG, you can compare the effects of market volatilities on Airbnb 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 Airbnb with a short position of TUI AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbnb and TUI AG.
Diversification Opportunities for Airbnb and TUI AG
Very good diversification
The 3 months correlation between Airbnb and TUI is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Airbnb Inc and TUI AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TUI AG and Airbnb 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 Airbnb Inc 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 Airbnb i.e., Airbnb and TUI AG go up and down completely randomly.
Pair Corralation between Airbnb and TUI AG
Given the investment horizon of 90 days Airbnb Inc is expected to under-perform the TUI AG. But the stock apears to be less risky and, when comparing its historical volatility, Airbnb Inc is 1.69 times less risky than TUI AG. The stock trades about -0.09 of its potential returns per unit of risk. The TUI AG is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 819.00 in TUI AG on June 12, 2025 and sell it today you would earn a total of 199.00 from holding TUI AG or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Airbnb Inc vs. TUI AG
Performance |
| Timeline |
| Airbnb Inc |
| TUI AG |
Airbnb and TUI AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbnb and TUI AG
The main advantage of trading using opposite Airbnb and TUI AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbnb 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.| Airbnb vs. Norwegian Cruise Line | Airbnb vs. Royal Caribbean Cruises | Airbnb vs. Expedia Group | Airbnb vs. Booking Holdings |
| TUI AG vs. TripAdvisor | TUI AG vs. Carnival | TUI AG vs. Accor SA | TUI AG vs. International Consolidated Airlines |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |