Correlation Analysis Between Expedia and VMware |
This module allows you to analyze existing cross correlation between Expedia and VMware. You can compare the effects of market volatilities on Expedia and VMware 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 VMware. See also your portfolio center. Please also check ongoing floating volatility patterns of Expedia and VMware.
| Time Horizon | 30 Days Login to change |
| Symbols | vs |
Expedia Inc vs. VMware Inc
Pair Volatility
Given the investment horizon of 30 days, Expedia is expected to generate 1.25 times less return on investment than VMware. But when comparing it to its historical volatility, Expedia is 1.49 times less risky than VMware. It trades about 0.28 of its potential returns per unit of risk. VMware is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 13,869 in VMware on May 20, 2018 and sell it today you would earn a total of 1,234 from holding VMware or generate 8.9% return on investment over 30 days.
Pair Corralation between Expedia and VMware
0.86
| Time Period | 1 Month [change] |
| Direction | Positive |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Expedia Inc and VMware Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on VMware 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 are associated (or correlated) with VMware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VMware has no effect on the direction of Expedia i.e. Expedia and VMware go up and down completely randomly.
Comparative Volatility
| Expedia |
18 Risk-Adjusted Performance
Risk-Adjusted PerformanceCompared to the overall equity markets, risk-adjusted returns on investments in Expedia are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.
Expedia
Pair trading matchups for Expedia
| VMware |
15 Risk-Adjusted Performance
Risk-Adjusted PerformanceCompared to the overall equity markets, risk-adjusted returns on investments in VMware are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.
VMware
Pair trading matchups for VMware
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See also your portfolio center. Please also try Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.