Correlation Between Golden Grail and Trivago NV
Can any of the company-specific risk be diversified away by investing in both Golden Grail 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 Golden Grail and Trivago NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Golden Grail Technology and Trivago NV, you can compare the effects of market volatilities on Golden Grail 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 Golden Grail with a short position of Trivago NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Golden Grail and Trivago NV.
Diversification Opportunities for Golden Grail and Trivago NV
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Golden and Trivago is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Golden Grail Technology and Trivago NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trivago NV and Golden Grail 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 Golden Grail Technology 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 Golden Grail i.e., Golden Grail and Trivago NV go up and down completely randomly.
Pair Corralation between Golden Grail and Trivago NV
Given the investment horizon of 90 days Golden Grail Technology is expected to generate 3.3 times more return on investment than Trivago NV. However, Golden Grail is 3.3 times more volatile than Trivago NV. It trades about 0.14 of its potential returns per unit of risk. Trivago NV is currently generating about 0.35 per unit of risk. If you would invest 3.22 in Golden Grail Technology on September 1, 2024 and sell it today you would earn a total of 0.78 from holding Golden Grail Technology or generate 24.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Golden Grail Technology vs. Trivago NV
Performance |
| Timeline |
| Golden Grail Technology |
| Trivago NV |
Golden Grail and Trivago NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Golden Grail and Trivago NV
The main advantage of trading using opposite Golden Grail and Trivago NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Golden Grail 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.| Golden Grail vs. Tencent Holdings | Golden Grail vs. Autohome | Golden Grail vs. Arena Group Holdings | Golden Grail vs. Asset Entities Class |
| Trivago NV vs. Upexi Inc | Trivago NV vs. Cheetah Mobile | Trivago NV vs. Comscore | Trivago NV vs. PropertyGuru Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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