Correlation Between Trivago NV and Leafbuyer Technologies
Can any of the company-specific risk be diversified away by investing in both Trivago NV and Leafbuyer Technologies 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 Trivago NV and Leafbuyer Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trivago NV and Leafbuyer Technologies, you can compare the effects of market volatilities on Trivago NV and Leafbuyer Technologies 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 Trivago NV with a short position of Leafbuyer Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trivago NV and Leafbuyer Technologies.
Diversification Opportunities for Trivago NV and Leafbuyer Technologies
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trivago and Leafbuyer is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Trivago NV and Leafbuyer Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leafbuyer Technologies and Trivago NV 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 Trivago NV are associated (or correlated) with Leafbuyer Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leafbuyer Technologies has no effect on the direction of Trivago NV i.e., Trivago NV and Leafbuyer Technologies go up and down completely randomly.
Pair Corralation between Trivago NV and Leafbuyer Technologies
Given the investment horizon of 90 days Trivago NV is expected to generate 5.79 times less return on investment than Leafbuyer Technologies. But when comparing it to its historical volatility, Trivago NV is 8.54 times less risky than Leafbuyer Technologies. It trades about 0.26 of its potential returns per unit of risk. Leafbuyer Technologies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1.00 in Leafbuyer Technologies on August 29, 2024 and sell it today you would earn a total of 0.30 from holding Leafbuyer Technologies or generate 30.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trivago NV vs. Leafbuyer Technologies
Performance |
| Timeline |
| Trivago NV |
| Leafbuyer Technologies |
Trivago NV and Leafbuyer Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trivago NV and Leafbuyer Technologies
The main advantage of trading using opposite Trivago NV and Leafbuyer Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trivago NV position performs unexpectedly, Leafbuyer Technologies 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 Leafbuyer Technologies will offset losses from the drop in Leafbuyer Technologies' long position.| Trivago NV vs. Upexi Inc | Trivago NV vs. Cheetah Mobile | Trivago NV vs. Comscore | Trivago NV vs. PropertyGuru Group |
| Leafbuyer Technologies vs. Meta Platforms | Leafbuyer Technologies vs. Alphabet Inc Class C | Leafbuyer Technologies vs. Twilio Inc | Leafbuyer Technologies vs. Snap Inc |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |