Benchmark  United States  NYSE  10,841   41.0195  -0.3769% 


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Correlation analysis between Microsoft and Expedia

    
  
Summary
Performance
FundamentalsTechnicalsRecomendation
   Valuation
   Backtest
   Forecast
Investment horizon:  
  30 Days    Login   to change
  
This module allows you to analyze existing cross correlation between Microsoft Corporation and Expedia Inc. You can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of Expedia. Please also check ongoing floating volatility patterns of Microsoft and Expedia.
 Microsoft Corp.  vs   Expedia Inc.
Daily Returns (%)
EXPE   MSFT   
Benchmark  Embed   Timeline 
Given the investment horizon of 30 days, Microsoft is expected to generate 2.77 times less return on investment than Expedia. But when comparing it to its historical volatility, Microsoft Corporation is 2.63 times less risky than Expedia. It trades about 0.2 of its potential returns per unit of risk. Expedia Inc is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  10,650  in Expedia Inc on July 5, 2015 and sell it today you would earn a total of  1,609  from holding Expedia Inc or generate 15.11% return on investment over 30 days.

Correlation Coefficient

0.02

Parameters

Time Period1 Month [change]
DirectionPositive EXPE Moved Up vs MSFT
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Significant diversification

Overlapping area represents amount of risk that can be diversified away by holding Microsoft Corp. and Expedia Inc. in the same portfolio assuming nothing else is changed

Historical Performance Chart

Comparative Volatility

Predicted Return Density  
Benchmark  Embed   Returns 

Microsoft

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Microsoft

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Iron Mountain Inc vs. Microsoft Corporation
  

Expedia Inc

  

Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

Pair trading matchups for Expedia

Hilton Worldwide Holdings Inc vs. Expedia Inc
Marriott International Inc vs. Expedia Inc
Starwood Hotels Resorts Worldwide Inc vs. Expedia Inc
Ctrip International Ltd vs. Expedia Inc
Wyndham Worldwide Corporation vs. Expedia Inc
Intercontinental Hotels Group plc vs. Expedia Inc
Extended Stay America Inc vs. Expedia Inc
Choice Hotels International Inc vs. Expedia Inc
ASIAN HOTELS LTD vs. Expedia Inc