Correlation Between Visa and Trivago NV
Can any of the company-specific risk be diversified away by investing in both Visa 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 Visa and Trivago NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Trivago NV, you can compare the effects of market volatilities on Visa 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 Visa with a short position of Trivago NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Trivago NV.
Diversification Opportunities for Visa and Trivago NV
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Visa and Trivago is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Trivago NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trivago NV and Visa 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 Visa Class A 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 Visa i.e., Visa and Trivago NV go up and down completely randomly.
Pair Corralation between Visa and Trivago NV
Taking into account the 90-day investment horizon Visa Class A is expected to generate 0.47 times more return on investment than Trivago NV. However, Visa Class A is 2.14 times less risky than Trivago NV. It trades about -0.06 of its potential returns per unit of risk. Trivago NV is currently generating about -0.05 per unit of risk. If you would invest 34,330 in Visa Class A on September 9, 2025 and sell it today you would lose (1,646) from holding Visa Class A or give up 4.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Visa Class A vs. Trivago NV
Performance |
| Timeline |
| Visa Class A |
| Trivago NV |
Visa and Trivago NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Trivago NV
The main advantage of trading using opposite Visa and Trivago NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa 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 Visa Class A 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.| Trivago NV vs. Microsoft | Trivago NV vs. Meta Platforms | Trivago NV vs. Apple Inc | Trivago NV vs. Taiwan Semiconductor Manufacturing |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |