Correlation Between TUI AG and Clarus Corp

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

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

Diversification Opportunities for TUI AG and Clarus Corp

0.09

Correlation Coefficient

TUI AG  Clarus Corp

Significant diversification

The 3 months correlation between TUI and Clarus is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding TUI AG and Clarus Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clarus Corp and TUI AG 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 TUI AG are associated (or correlated) with Clarus Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clarus Corp has no effect on the direction of TUI AG i.e., TUI AG and Clarus Corp go up and down completely randomly.

Pair Corralation between TUI AG and Clarus Corp

Assuming the 90 days horizon TUI AG is expected to generate 0.79 times more return on investment than Clarus Corp. However, TUI AG is 1.27 times less risky than Clarus Corp. It trades about 0.07 of its potential returns per unit of risk. Clarus Corp is currently generating about 0.04 per unit of risk. If you would invest  822.00  in TUI AG on June 30, 2025 and sell it today you would earn a total of  91.00  from holding TUI AG or generate 11.07% return on investment over 90 days.

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

TUI AG  vs.  Clarus Corp

TUI AG

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TUI AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, TUI AG reported solid returns over the last few months and may actually be approaching a breakup point.

Clarus Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Clarus Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Clarus Corp may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with TUI AG and Clarus Corp

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

The idea behind TUI AG and Clarus Corp 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 Commodity Directory module to find actively traded commodities issued by global exchanges.