This module allows you to analyze existing cross correlation between Expedia Inc and SAP SE. You can compare the effects of market volatilities on Expedia and S A P 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 S A P. See also your portfolio center
. Please also check ongoing floating volatility patterns of Expedia
and S A P
Expedia Inc. vs SAP SE
Given the investment horizon of 30 days, Expedia Inc is expected to generate 1.44 times more return on investment than S A P. However, Expedia is 1.44 times more volatile than SAP SE. It trades about 0.39 of its potential returns per unit of risk. SAP SE is currently generating about 0.37 per unit of risk. If you would invest 11,869 in Expedia Inc on February 25, 2017 and sell it today you would earn a total of 907.00 from holding Expedia Inc or generate 7.64% 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 SAP SE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SAP SE 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 S A P. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAP SE has no effect on the direction of Expedia i.e. Expedia and S A P go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in SAP SE are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days.