Correlation Between Genius Sports and Trivago NV
Can any of the company-specific risk be diversified away by investing in both Genius Sports and Trivago NV 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 Genius Sports and Trivago NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Genius Sports and Trivago NV, you can compare the effects of market volatilities on Genius Sports and Trivago NV 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 Genius Sports with a short position of Trivago NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Genius Sports and Trivago NV.
Diversification Opportunities for Genius Sports and Trivago NV
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Genius and Trivago is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Genius Sports and Trivago NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trivago NV and Genius Sports 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 Genius Sports are associated (or correlated) with Trivago NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trivago NV has no effect on the direction of Genius Sports i.e., Genius Sports and Trivago NV go up and down completely randomly.
Pair Corralation between Genius Sports and Trivago NV
Given the investment horizon of 90 days Genius Sports is expected to generate 2.08 times less return on investment than Trivago NV. But when comparing it to its historical volatility, Genius Sports is 1.19 times less risky than Trivago NV. It trades about 0.12 of its potential returns per unit of risk. Trivago NV is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 165.00 in Trivago NV on October 26, 2024 and sell it today you would earn a total of 102.00 from holding Trivago NV or generate 61.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Genius Sports vs. Trivago NV
Performance |
| Timeline |
| Genius Sports |
| Trivago NV |
Genius Sports and Trivago NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Genius Sports and Trivago NV
The main advantage of trading using opposite Genius Sports and Trivago NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genius Sports position performs unexpectedly, Trivago NV 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 Trivago NV will offset losses from the drop in Trivago NV's long position.| Genius Sports vs. MediaAlpha | Genius Sports vs. Comscore | Genius Sports vs. Cheetah Mobile | Genius Sports vs. Onfolio Holdings |
| Trivago NV vs. Upexi Inc | Trivago NV vs. Cheetah Mobile | Trivago NV vs. Comscore | Trivago NV vs. EverQuote Class A |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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