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
Symbolsvs

Expedia Inc  vs.  VMware Inc

 Performance (%) 
      Timeline 

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 Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily 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

 Predicted Return Density 
      Returns 
Expedia  
18 

Risk-Adjusted Performance

Compared 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.
VMware  
15 

Risk-Adjusted Performance

Compared 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.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1168.06

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