This module allows you to analyze existing cross correlation between Salesforce com 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 com inc is expected to under-perform the Expedia. But the stock apears to be less risky and, when comparing its historical volatility, Salesforce com inc is 1.49 times less risky than Expedia. The stock trades about -0.06 of its potential returns per unit of risk. The Expedia Inc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 14,253 in Expedia Inc on August 27, 2017 and sell it today you would earn a total of 19.00 from holding Expedia Inc or generate 0.13% return on investment over 30 days.
|Time Period||1 Month [change]|
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 com 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.
Over the last 30 days Salesforce com inc has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Expedia Inc has generated negative risk-adjusted returns adding no value to investors with long positions.