Correlation Between Dr Ing and Trip Group

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

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

Diversification Opportunities for Dr Ing and Trip Group

-0.54

Correlation Coefficient

Dr Ing  Trip Group

Excellent diversification

The 3 months correlation between DRPRY and Trip is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Dr Ing hc and Trip Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trip Group Limited and Dr Ing 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 Dr Ing hc are associated (or correlated) with Trip Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trip Group Limited has no effect on the direction of Dr Ing i.e., Dr Ing and Trip Group go up and down completely randomly.

Pair Corralation between Dr Ing and Trip Group

Assuming the 90 days horizon Dr Ing is expected to generate 9.43 times less return on investment than Trip Group. But when comparing it to its historical volatility, Dr Ing hc is 1.24 times less risky than Trip Group. It trades about 0.01 of its potential returns per unit of risk. Trip Group Limited is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest  6,300  in Trip Group Limited on August 11, 2025 and sell it today you would earn a total of  798.00  from holding Trip Group Limited or generate 12.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.48%
Values	Daily Returns

Dr Ing hc  vs.  Trip Group Limited

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. In spite of fairly strong basic indicators, Dr Ing is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

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 7 (%) 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.

Pair Trading with Dr Ing and Trip Group

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

The idea behind Dr Ing hc and Trip Group Limited 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.