Benchmark  United States  NYSE  10,749   116.1182  -1.0688% 


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Correlation analysis between Expedia and Microsoft

    
  
Summary
Performance
FundamentalsTechnicalsRecomendation
   Valuation
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Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between Expedia Inc and Microsoft Corporation. You can compare the effects of market volatilities on Expedia and Microsoft 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 Expedia with a short position of Microsoft. Please also check ongoing floating volatility patterns of Expedia and Microsoft.
 Expedia Inc.  vs   Microsoft Corp.
Daily Returns (%)
EXPE   MSFT   
Benchmark  Embed   Timeline 
Given the investment horizon of 30 days, Expedia Inc is expected to generate 1.46 times more return on investment than Microsoft. However, Expedia is 1.46 times more volatile than Microsoft Corporation. It trades about 0.06 of its potential returns per unit of risk. Microsoft Corporation is currently generating about -0.15 per unit of risk. If you would invest  10,479  in Expedia Inc on June 6, 2015 and sell it today you would earn a total of  148.00  from holding Expedia Inc or generate 1.41% return on investment over 30 days.

Correlation Coefficient

0.59

Parameters

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

Diversification

Very weak diversification

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

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Expedia Inc

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Expedia

Marriott International Inc vs. Expedia Inc
Starwood Hotels Resorts Worldwide Inc vs. Expedia Inc
Ctrip International Ltd vs. Expedia Inc
Wyndham Worldwide Corporation vs. Expedia Inc
Extended Stay America Inc vs. Expedia Inc
  

Microsoft

  

Risk-adjusted Performance

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

Pair trading matchups for Microsoft

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