Correlation Between TRAVEL + and Haleon PLC
Can any of the company-specific risk be diversified away by investing in both TRAVEL + and Haleon PLC 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 Haleon PLC 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 Haleon PLC, you can compare the effects of market volatilities on TRAVEL + and Haleon PLC 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 Haleon PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVEL + and Haleon PLC.
Diversification Opportunities for TRAVEL + and Haleon PLC
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TRAVEL and Haleon is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding TRAVEL LEISURE DL 01 and Haleon PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haleon PLC 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 Haleon PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haleon PLC has no effect on the direction of TRAVEL + i.e., TRAVEL + and Haleon PLC go up and down completely randomly.
Pair Corralation between TRAVEL + and Haleon PLC
Assuming the 90 days trading horizon TRAVEL LEISURE DL 01 is expected to generate 1.25 times more return on investment than Haleon PLC. However, TRAVEL + is 1.25 times more volatile than Haleon PLC. It trades about 0.28 of its potential returns per unit of risk. Haleon PLC is currently generating about -0.05 per unit of risk. If you would invest 3,500 in TRAVEL LEISURE DL 01 on April 22, 2025 and sell it today you would earn a total of 1,360 from holding TRAVEL LEISURE DL 01 or generate 38.86% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
TRAVEL LEISURE DL 01 vs. Haleon PLC
Performance |
Timeline |
TRAVEL LEISURE DL |
Haleon PLC |
TRAVEL + and Haleon PLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TRAVEL + and Haleon PLC
The main advantage of trading using opposite TRAVEL + and Haleon PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVEL + position performs unexpectedly, Haleon PLC 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 Haleon PLC will offset losses from the drop in Haleon PLC's long position.TRAVEL + vs. GRENKELEASING Dusseldorf | TRAVEL + vs. DENTSPLY SIRONA | TRAVEL + vs. Global Ship Lease | TRAVEL + vs. Tianjin Capital Environmental |
Haleon PLC vs. TRAVEL LEISURE DL 01 | Haleon PLC vs. Gaming and Leisure | Haleon PLC vs. ePlay Digital | Haleon PLC vs. ARISTOCRAT LEISURE |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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