This module allows you to analyze existing cross correlation between Expedia Inc and Oracle Corporation. You can compare the effects of market volatilities on Expedia and Oracle 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 Oracle. See also your portfolio center
. Please also check ongoing floating volatility patterns of Expedia
Expedia Inc vs Oracle Corp.
Given the investment horizon of 30 days, Expedia Inc is expected to generate 2.46 times more return on investment than Oracle. However, Expedia is 2.46 times more volatile than Oracle Corporation. It trades about 0.26 of its potential returns per unit of risk. Oracle Corporation is currently generating about 0.3 per unit of risk. If you would invest 14,147 in Expedia Inc on September 19, 2017 and sell it today you would earn a total of 982 from holding Expedia Inc or generate 6.94% 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 Expedia Inc and Oracle Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Oracle and Expedia 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 Expedia Inc are associated (or correlated) with Oracle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oracle has no effect on the direction of Expedia i.e. Expedia and Oracle go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Expedia 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 Oracle Corporation are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.