Correlation Between JOYY and Travelzoo

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

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

Diversification Opportunities for JOYY and Travelzoo

-0.48

Correlation Coefficient

JOYY  Travelzoo

Very good diversification

The 3 months correlation between JOYY and Travelzoo is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding JOYY Inc and Travelzoo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Travelzoo and JOYY 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 JOYY Inc are associated (or correlated) with Travelzoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Travelzoo has no effect on the direction of JOYY i.e., JOYY and Travelzoo go up and down completely randomly.

Pair Corralation between JOYY and Travelzoo

Given the investment horizon of 90 days JOYY Inc is expected to generate 0.45 times more return on investment than Travelzoo. However, JOYY Inc is 2.22 times less risky than Travelzoo. It trades about 0.2 of its potential returns per unit of risk. Travelzoo is currently generating about -0.16 per unit of risk. If you would invest  4,157  in JOYY Inc on May 6, 2025 and sell it today you would earn a total of  862.00  from holding JOYY Inc or generate 20.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

JOYY Inc  vs.  Travelzoo

JOYY Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in JOYY Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, JOYY showed solid returns over the last few months and may actually be approaching a breakup point.

Travelzoo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Travelzoo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with JOYY and Travelzoo

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

The idea behind JOYY Inc and Travelzoo 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.