Correlation Between Airbnb and Coinbase Global

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

By analyzing existing cross correlation between Airbnb Inc and Coinbase Global, you can compare the effects of market volatilities on Airbnb and Coinbase Global 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 Coinbase Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbnb and Coinbase Global.

Diversification Opportunities for Airbnb and Coinbase Global

0.61

Correlation Coefficient

Airbnb  Coinbase Global

Poor diversification

The 3 months correlation between Airbnb and Coinbase is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Airbnb Inc and Coinbase Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Global 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 Coinbase Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Global has no effect on the direction of Airbnb i.e., Airbnb and Coinbase Global go up and down completely randomly.

Pair Corralation between Airbnb and Coinbase Global

Given the investment horizon of 90 days Airbnb is expected to generate 6.73 times less return on investment than Coinbase Global. But when comparing it to its historical volatility, Airbnb Inc is 3.1 times less risky than Coinbase Global. It trades about 0.08 of its potential returns per unit of risk. Coinbase Global is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  19,689  in Coinbase Global on May 6, 2025 and sell it today you would earn a total of  11,780  from holding Coinbase Global or generate 59.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Airbnb Inc  vs.  Coinbase Global

Airbnb Inc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Airbnb Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent basic indicators, Airbnb may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Coinbase Global

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Global are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating forward indicators, Coinbase Global displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Airbnb and Coinbase Global

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

The idea behind Airbnb Inc and Coinbase Global 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.

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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.