Correlation Between Golden Grail and Trivago NV

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

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

Diversification Opportunities for Golden Grail and Trivago NV

0.72

Correlation Coefficient

Golden Grail  Trivago NV

Poor diversification

The 3 months correlation between Golden and Trivago is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Golden Grail Technology and Trivago NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trivago NV and Golden Grail 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 Golden Grail Technology 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 Golden Grail i.e., Golden Grail and Trivago NV go up and down completely randomly.

Pair Corralation between Golden Grail and Trivago NV

Given the investment horizon of 90 days Golden Grail Technology is expected to generate 4.26 times more return on investment than Trivago NV. However, Golden Grail is 4.26 times more volatile than Trivago NV. It trades about 0.03 of its potential returns per unit of risk. Trivago NV is currently generating about -0.09 per unit of risk. If you would invest  2.11  in Golden Grail Technology on May 6, 2025 and sell it today you would lose (0.32) from holding Golden Grail Technology or give up 15.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Golden Grail Technology  vs.  Trivago NV

Golden Grail Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Grail Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly fragile technical and fundamental indicators, Golden Grail showed solid returns over the last few months and may actually be approaching a breakup point.

Trivago NV

Risk-Adjusted Performance

Very Weak

Over the last 90 days Trivago NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Golden Grail and Trivago NV

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

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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 Stocks Directory module to find actively traded stocks across global markets.