Correlation Between Trivago NV and Radcom

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

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

Diversification Opportunities for Trivago NV and Radcom

-0.17

Correlation Coefficient

Trivago NV  Radcom

Good diversification

The 3 months correlation between Trivago and Radcom is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Trivago NV and Radcom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radcom 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 Radcom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radcom has no effect on the direction of Trivago NV i.e., Trivago NV and Radcom go up and down completely randomly.

Pair Corralation between Trivago NV and Radcom

Given the investment horizon of 90 days Trivago NV is expected to under-perform the Radcom. In addition to that, Trivago NV is 1.64 times more volatile than Radcom. It trades about -0.1 of its total potential returns per unit of risk. Radcom is currently generating about 0.04 per unit of volatility. If you would invest  1,321  in Radcom on August 4, 2025 and sell it today you would earn a total of  54.00  from holding Radcom or generate 4.09% 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.  Radcom

Trivago NV

Risk-Adjusted Performance

Weakest

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

Radcom

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Radcom are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy fundamental indicators, Radcom is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Trivago NV and Radcom

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

The idea behind Trivago NV and Radcom 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .