Correlation Between CuriosityStream and TripAdvisor

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

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

Diversification Opportunities for CuriosityStream and TripAdvisor

-0.41

Correlation Coefficient

CuriosityStream  TripAdvisor

Very good diversification

The 3 months correlation between CuriosityStream and TripAdvisor is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding CuriosityStream and TripAdvisor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TripAdvisor and CuriosityStream 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 CuriosityStream are associated (or correlated) with TripAdvisor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TripAdvisor has no effect on the direction of CuriosityStream i.e., CuriosityStream and TripAdvisor go up and down completely randomly.

Pair Corralation between CuriosityStream and TripAdvisor

Assuming the 90 days horizon CuriosityStream is expected to generate 1.81 times less return on investment than TripAdvisor. In addition to that, CuriosityStream is 4.72 times more volatile than TripAdvisor. It trades about 0.02 of its total potential returns per unit of risk. TripAdvisor is currently generating about 0.13 per unit of volatility. If you would invest  1,305  in TripAdvisor on June 29, 2025 and sell it today you would earn a total of  409.00  from holding TripAdvisor or generate 31.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	92.06%
Values	Daily Returns

CuriosityStream  vs.  TripAdvisor

CuriosityStream

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CuriosityStream are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak forward indicators, CuriosityStream showed solid returns over the last few months and may actually be approaching a breakup point.

TripAdvisor

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in TripAdvisor are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady forward indicators, TripAdvisor reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CuriosityStream and TripAdvisor

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

The idea behind CuriosityStream and TripAdvisor 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.

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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..