Correlation Analysis Between Salesforce and Expedia

       
Investment Horizon     30 Days    Login   to change
This module allows you to analyze existing cross correlation between Salesforce Inc and Expedia Inc. You can compare the effects of market volatilities on Salesforce and Expedia 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 Salesforce with a short position of Expedia. Please also check ongoing floating volatility patterns of Salesforce and Expedia.
 Salesforce.com Inc  vs   Expedia Inc.
Daily Returns (%)
EXPE   CRM   
Benchmark  Embed   Timeline 
Considering 30-days investment horizon, Salesforce Inc is expected to generate 1.01 times more return on investment than Expedia. However, Salesforce is 1.01 times more volatile than Expedia Inc. It trades about -0.07 of its potential returns per unit of risk. Expedia Inc is currently generating about -0.11 per unit of risk. If you would invest  7,244  in Salesforce Inc on August 1, 2015 and sell it today you would lose (308.00) from holding Salesforce Inc or give up 4.25% of portfolio value over 30 days.

Correlation Coefficient

0.78

Parameters

Time Period1 Month [change]
DirectionPositive EXPE Moved Up vs CRM
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns
  

Diversification

Poor diversification

Overlapping area represents amount of risk that can be diversified away by holding Salesforce.com Inc and Expedia Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Salesforce Inc

  

Risk-adjusted Performance

Over the last 30 days Salesforce Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Salesforce

  

Expedia Inc

  

Risk-adjusted Performance

Over the last 30 days Expedia Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Expedia