Pair Correlation Between Expedia and Oracle

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 and Oracle.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Expedia Inc  vs   Oracle Corp.
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Expedia is expected to generate 4.11 times less return on investment than Oracle. But when comparing it to its historical volatility, Expedia Inc is 1.28 times less risky than Oracle. It trades about 0.09 of its potential returns per unit of risk. Oracle Corporation is currently generating about 0.27 of returns per unit of risk over similar time horizon. If you would invest  4,542  in Oracle Corporation on May 29, 2017 and sell it today you would earn a total of  533.00  from holding Oracle Corporation or generate 11.73% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Expedia and Oracle
0.79

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Expedia Inc

  
5 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.

Oracle

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Oracle Corporation are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.