Macroaxis: Personalized Investing

Personalized Investing and

Digital Wealth Optimization

Benchmark  United States  NYSE  11,193   1.45  0.01% 


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Collecting data for EXPE and MSFT ...

Correlation analysis between Expedia and Microsoft  

    
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 is expected to generate 3.24 times less return on investment than Microsoft. But when comparing it to its historical volatility, Expedia Inc is 2.21 times less risky than Microsoft. It trades about 0.22 of its potential returns per unit of risk. Microsoft Corporation is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest  4,096  in Microsoft Corporation on March 28, 2015 and sell it today you would earn a total of  691  from holding Microsoft Corporation or generate 16.87% return on investment over 30 days.

Correlation Coefficient

-0.01

Parameters

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

Diversification

Good 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

  
Compared with the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Expedia

Hilton Worldwide Holdings Inc vs. Expedia Inc
Marriott International Inc vs. Expedia Inc
Starwood Hotels Resorts Worldwide Inc vs. Expedia Inc
Wyndham Worldwide Corporation vs. Expedia Inc
Intercontinental Hotels Group plc vs. Expedia Inc
Ctrip International Ltd vs. Expedia Inc
Extended Stay America Inc vs. Expedia Inc
Choice Hotels International Inc vs. Expedia Inc
Home Inns Hotels Management Inc vs. Expedia Inc
  

Microsoft

  
Compared with the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Microsoft

Automatic Data Processing Inc vs. Microsoft Corporation
Cognizant Technology Solutions Corporation vs. Microsoft Corporation
CA Technologies vs. Microsoft Corporation
Citrix Systems Inc vs. Microsoft Corporation
Amdocs Limited vs. Microsoft Corporation
F5 Networks Inc vs. Microsoft Corporation
Iron Mountain Inc vs. Microsoft Corporation
NetSuite Inc vs. Microsoft Corporation
Jack Henry Associates Inc vs. Microsoft Corporation