Correlation Between PropertyGuru and Trivago NV

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

By analyzing existing cross correlation between PropertyGuru Group and Trivago NV, you can compare the effects of market volatilities on PropertyGuru 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 PropertyGuru with a short position of Trivago NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of PropertyGuru and Trivago NV.

Diversification Opportunities for PropertyGuru and Trivago NV

0.0

Correlation Coefficient

PropertyGuru  Trivago NV

Pay attention - limited upside

The 3 months correlation between PropertyGuru and Trivago is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PropertyGuru Group and Trivago NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trivago NV and PropertyGuru 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 PropertyGuru Group 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 PropertyGuru i.e., PropertyGuru and Trivago NV go up and down completely randomly.

Pair Corralation between PropertyGuru and Trivago NV

If you would invest  218.00  in Trivago NV on December 31, 2024 and sell it today you would earn a total of  255.00  from holding Trivago NV or generate 116.97% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

PropertyGuru Group  vs.  Trivago NV

PropertyGuru Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days PropertyGuru Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, PropertyGuru is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Trivago NV

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Trivago NV are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Trivago NV reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with PropertyGuru and Trivago NV

The main advantage of trading using opposite PropertyGuru and Trivago NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PropertyGuru 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.

The idea behind PropertyGuru Group and Trivago NV 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.