Correlation Between Koss and TripAdvisor

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

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

Diversification Opportunities for Koss and TripAdvisor

0.18

Correlation Coefficient

Koss  TripAdvisor

Average diversification

The 3 months correlation between Koss and TripAdvisor is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Koss Corp. and TripAdvisor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TripAdvisor and Koss 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 Koss Corporation 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 Koss i.e., Koss and TripAdvisor go up and down completely randomly.

Pair Corralation between Koss and TripAdvisor

Given the investment horizon of 90 days Koss is expected to generate 2.8 times less return on investment than TripAdvisor. In addition to that, Koss is 1.12 times more volatile than TripAdvisor. It trades about 0.03 of its total potential returns per unit of risk. TripAdvisor is currently generating about 0.09 per unit of volatility. If you would invest  1,530  in TripAdvisor on May 11, 2025 and sell it today you would earn a total of  267.00  from holding TripAdvisor or generate 17.45% return on investment over 90 days.

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

Koss Corp.  vs.  TripAdvisor

Koss

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Koss Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Koss may actually be approaching a critical reversion point that can send shares even higher in September 2025.

TripAdvisor

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in TripAdvisor are ranked lower than 6 (%) 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 Koss and TripAdvisor

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

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.