Correlation Between Morgans Hotel and Expedia
Can any of the company-specific risk be diversified away by investing in both Morgans Hotel and Expedia at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Morgans Hotel and Expedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Morgans Hotel Group and Expedia Group, you can compare the effects of market volatilities on Morgans Hotel and Expedia 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 Morgans Hotel with a short position of Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Morgans Hotel and Expedia.
Diversification Opportunities for Morgans Hotel and Expedia
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Morgans and Expedia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Morgans Hotel Group and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group and Morgans Hotel 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 Morgans Hotel Group are associated (or correlated) with Expedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expedia Group has no effect on the direction of Morgans Hotel i.e., Morgans Hotel and Expedia go up and down completely randomly.
Pair Corralation between Morgans Hotel and Expedia
If you would invest 0.00 in Morgans Hotel Group on February 10, 2024 and sell it today you would earn a total of 0.00 from holding Morgans Hotel Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.59% |
| Values | Daily Returns |
Morgans Hotel Group vs. Expedia Group
Performance |
| Timeline |
| Morgans Hotel Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Expedia Group |
Morgans Hotel and Expedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Morgans Hotel and Expedia
The main advantage of trading using opposite Morgans Hotel and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Morgans Hotel position performs unexpectedly, Expedia can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Expedia will offset losses from the drop in Expedia's long position.| Morgans Hotel vs. Falcon Metals Limited | Morgans Hotel vs. Highway Holdings Limited | Morgans Hotel vs. Ecoloclean Industrs | Morgans Hotel vs. Griffon |
| Expedia vs. AirbnbInc | Expedia vs. TripAdvisor | Expedia vs. Royal Caribbean Cruises | Expedia vs. Norwegian Cruise Line |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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