Benchmark  United States  NYSE  11,198   41.9775  -0.3735% 


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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 is expected to generate 1.27 times less return on investment than Expedia. In addition to that, Salesforce is 1.42 times more volatile than Expedia Inc. It trades about 0.17 of its total potential returns per unit of risk. Expedia Inc is currently generating about 0.31 per unit of volatility. If you would invest  9,882  in Expedia Inc on April 26, 2015 and sell it today you would earn a total of  1,418  from holding Expedia Inc or generate 14.35% return on investment over 30 days.

Correlation Coefficient

-0.15

Parameters

Time Period1 Month [change]
DirectionNegative CRM Moved Down vs EXPE
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Good 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

Compared to the overall equity markets, risk-adjusted returns on investments in Salesforce Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Salesforce

Oracle Corporation vs. Salesforce Inc
Red Hat Inc vs. Salesforce Inc
Splunk Inc vs. Salesforce Inc
  

Expedia Inc

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Expedia

Starwood Hotels Resorts Worldwide Inc vs. Expedia Inc
Choice Hotels International Inc vs. Expedia Inc