Correlation Between TripAdvisor and Ke Holdings

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

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

Diversification Opportunities for TripAdvisor and Ke Holdings

0.78

Correlation Coefficient

TripAdvisor  Ke Holdings

Poor diversification

The 3 months correlation between TripAdvisor and BEKE is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding TripAdvisor and Ke Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ke Holdings and TripAdvisor 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 TripAdvisor are associated (or correlated) with Ke Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ke Holdings has no effect on the direction of TripAdvisor i.e., TripAdvisor and Ke Holdings go up and down completely randomly.

Pair Corralation between TripAdvisor and Ke Holdings

Given the investment horizon of 90 days TripAdvisor is expected to under-perform the Ke Holdings. In addition to that, TripAdvisor is 1.49 times more volatile than Ke Holdings. It trades about -0.09 of its total potential returns per unit of risk. Ke Holdings is currently generating about -0.08 per unit of volatility. If you would invest  1,969  in Ke Holdings on September 13, 2025 and sell it today you would lose (217.00) from holding Ke Holdings or give up 11.02% of portfolio value over 90 days.

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

TripAdvisor  vs.  Ke Holdings

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.

Ke Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days Ke Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's forward-looking signals remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with TripAdvisor and Ke Holdings

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

The idea behind TripAdvisor and Ke Holdings 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.