Correlation Between Trip Group and Dr Ing

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

By analyzing existing cross correlation between Trip Group Limited and Dr Ing hc, you can compare the effects of market volatilities on Trip Group and Dr Ing 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 Trip Group with a short position of Dr Ing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trip Group and Dr Ing.

Diversification Opportunities for Trip Group and Dr Ing

-0.48

Correlation Coefficient

Trip Group  Dr Ing

Very good diversification

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

Pair Corralation between Trip Group and Dr Ing

Assuming the 90 days horizon Trip Group Limited is expected to generate 0.95 times more return on investment than Dr Ing. However, Trip Group Limited is 1.06 times less risky than Dr Ing. It trades about 0.1 of its potential returns per unit of risk. Dr Ing hc is currently generating about 0.01 per unit of risk. If you would invest  6,224  in Trip Group Limited on August 20, 2025 and sell it today you would earn a total of  874.00  from holding Trip Group Limited or generate 14.04% return on investment over 90 days.

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

Trip Group Limited  vs.  Dr Ing hc

Trip Group Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Trip Group Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, Trip Group reported solid returns over the last few months and may actually be approaching a breakup point.

Dr Ing hc

Risk-Adjusted Performance

Weakest

Over the last 90 days Dr Ing hc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Dr Ing is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Trip Group and Dr Ing

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

The idea behind Trip Group Limited and Dr Ing hc 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.