Correlation Between TRAVEL + and FedEx Corp

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

By analyzing existing cross correlation between TRAVEL LEISURE DL 01 and FedEx Corp, you can compare the effects of market volatilities on TRAVEL + and FedEx 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 TRAVEL + with a short position of FedEx Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVEL + and FedEx Corp.

Diversification Opportunities for TRAVEL + and FedEx Corp

0.0

Correlation Coefficient

TRAVEL +  FedEx Corp

Pay attention - limited upside

The 3 months correlation between TRAVEL and FedEx is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding TRAVEL LEISURE DL 01 and FedEx Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FedEx Corp and TRAVEL + 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 TRAVEL LEISURE DL 01 are associated (or correlated) with FedEx Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FedEx Corp has no effect on the direction of TRAVEL + i.e., TRAVEL + and FedEx Corp go up and down completely randomly.

Pair Corralation between TRAVEL + and FedEx Corp

If you would invest  3,737  in TRAVEL LEISURE DL 01 on April 24, 2025 and sell it today you would earn a total of  1,103  from holding TRAVEL LEISURE DL 01 or generate 29.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

TRAVEL LEISURE DL 01  vs.  FedEx Corp

TRAVEL LEISURE DL

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in TRAVEL LEISURE DL 01 are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, TRAVEL + reported solid returns over the last few months and may actually be approaching a breakup point.

FedEx Corp

Risk-Adjusted Performance

Insignificant

Over the last 90 days FedEx Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, FedEx Corp is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with TRAVEL + and FedEx Corp

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

The idea behind TRAVEL LEISURE DL 01 and FedEx 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.

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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.