Correlation Between Soho House and TripAdvisor

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

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

Diversification Opportunities for Soho House and TripAdvisor

0.25

Correlation Coefficient

Soho House  TripAdvisor

Modest diversification

The 3 months correlation between Soho and TripAdvisor is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Soho House Co and TripAdvisor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TripAdvisor and Soho House 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 Soho House Co are associated (or correlated) with TripAdvisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TripAdvisor has no effect on the direction of Soho House i.e., Soho House and TripAdvisor go up and down completely randomly.

Pair Corralation between Soho House and TripAdvisor

Given the investment horizon of 90 days Soho House Co is expected to generate 0.1 times more return on investment than TripAdvisor. However, Soho House Co is 9.91 times less risky than TripAdvisor. It trades about 0.04 of its potential returns per unit of risk. TripAdvisor is currently generating about -0.1 per unit of risk. If you would invest  886.00  in Soho House Co on September 15, 2025 and sell it today you would earn a total of  7.00  from holding Soho House Co or generate 0.79% return on investment over 90 days.

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

Soho House Co  vs.  TripAdvisor

Soho House

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Soho House Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Soho House is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

TripAdvisor

Risk-Adjusted Performance

Weakest

Over the last 90 days TripAdvisor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with abnormal performance in the last few months, the Stock's forward indicators remain relatively invariable which may send shares a bit higher in January 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Soho House and TripAdvisor

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

The idea behind Soho House Co and TripAdvisor 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.