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. See also your portfolio center
. Please also check ongoing floating volatility patterns of Salesforce
salesforce.com inc. vs Expedia Inc.
Considering 30-days investment horizon, Salesforce is expected to generate 1.22 times less return on investment than Expedia. But when comparing it to its historical volatility, salesforce inc is 1.29 times less risky than Expedia. It trades about 0.25 of its potential returns per unit of risk. Expedia Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 13,660 in Expedia Inc on April 29, 2017 and sell it today you would earn a total of 798.00 from holding Expedia Inc or generate 5.84% return on investment over 30 days.
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Very poor diversification
Overlapping area represents the 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. The correlation between historical prices or returns on Expedia Inc and Salesforce 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 salesforce inc are associated (or correlated) with Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Inc has no effect on the direction of Salesforce i.e. Salesforce and Expedia go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in salesforce inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.