Correlation Between Trivago NV and Upexi

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

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

Diversification Opportunities for Trivago NV and Upexi

-0.15

Correlation Coefficient

Trivago NV  Upexi

Good diversification

The 3 months correlation between Trivago and Upexi is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Trivago NV and Upexi Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upexi Inc 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 Upexi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upexi Inc has no effect on the direction of Trivago NV i.e., Trivago NV and Upexi go up and down completely randomly.

Pair Corralation between Trivago NV and Upexi

Given the investment horizon of 90 days Trivago NV is expected to generate 10.25 times less return on investment than Upexi. But when comparing it to its historical volatility, Trivago NV is 9.05 times less risky than Upexi. It trades about 0.07 of its potential returns per unit of risk. Upexi Inc is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  416.00  in Upexi Inc on September 2, 2024 and sell it today you would earn a total of  62.00  from holding Upexi Inc or generate 14.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Trivago NV  vs.  Upexi Inc

Trivago NV

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Trivago NV are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Trivago NV may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Upexi Inc

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Upexi Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly fragile basic indicators, Upexi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Trivago NV and Upexi

The main advantage of trading using opposite Trivago NV and Upexi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trivago NV position performs unexpectedly, Upexi 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 Upexi will offset losses from the drop in Upexi's long position.

The idea behind Trivago NV and Upexi Inc 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.