Correlation Between Booking Holdings and Stockland

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

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

Diversification Opportunities for Booking Holdings and Stockland

0.34

Correlation Coefficient

Booking Holdings  Stockland

Weak diversification

The 3 months correlation between Booking and Stockland is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Booking Holdings and Stockland in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stockland and Booking Holdings 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 Booking Holdings are associated (or correlated) with Stockland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stockland has no effect on the direction of Booking Holdings i.e., Booking Holdings and Stockland go up and down completely randomly.

Pair Corralation between Booking Holdings and Stockland

Given the investment horizon of 90 days Booking Holdings is expected to generate 2.09 times less return on investment than Stockland. But when comparing it to its historical volatility, Booking Holdings is 1.67 times less risky than Stockland. It trades about 0.06 of its potential returns per unit of risk. Stockland is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  328.00  in Stockland on May 4, 2025 and sell it today you would earn a total of  26.00  from holding Stockland or generate 7.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Booking Holdings  vs.  Stockland

Booking Holdings

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Booking Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Booking Holdings is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Stockland

Risk-Adjusted Performance

Modest

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

Pair Trading with Booking Holdings and Stockland

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

The idea behind Booking Holdings and Stockland 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.