This module allows you to analyze existing cross correlation between Salesforce and Expedia. 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 and Expedia.
Considering 30-days investment horizon, Salesforce is expected to generate 1.6 times less return on investment than Expedia. In addition to that, Salesforce is 1.08 times more volatile than Expedia. It trades about 0.04 of its total potential returns per unit of risk. Expedia is currently generating about 0.06 per unit of volatility. If you would invest 10,638 in Expedia on March 25, 2018 and sell it today you would earn a total of 427.00 from holding Expedia or generate 4.01% return on investment over 30 days.
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 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 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 has no effect on the direction of Salesforce i.e. Salesforce and Expedia go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.