Macroaxis: Personalized Investing

Personalized Investing and

Digital Wealth Optimization

Benchmark  United States  NYSE  10,875   9.9912 Index Moved Up 0.092%  


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Collecting data for MSFT and EXPE ...

Correlation analysis between Microsoft and Expedia  

    
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 Corporation is expected to under-perform the Expedia. In addition to that, Microsoft is 1.01 times more volatile than Expedia Inc. It trades about -0.24 of its total potential returns per unit of risk. Expedia Inc is currently generating about 0.08 per unit of volatility. If you would invest  9,175  in Expedia Inc on February 27, 2015 and sell it today you would earn a total of  193.00  from holding Expedia Inc or generate 2.1% return on investment over 30 days.

Correlation Coefficient

0.41

Parameters

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

Diversification

Very weak 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

  
Over the last 30 days Microsoft Corporation has generated negative risk-adjusted returns adding no value to investors with long positions.

Pair trading matchups for Microsoft

Automatic Data Processing Inc vs. Microsoft Corporation
Cognizant Technology Solutions Corporation vs. Microsoft Corporation
CA Technologies vs. Microsoft Corporation
Citrix Systems Inc vs. Microsoft Corporation
F5 Networks Inc vs. Microsoft Corporation
Amdocs Limited vs. Microsoft Corporation
Iron Mountain Inc vs. Microsoft Corporation
NetSuite Inc vs. Microsoft Corporation
Jack Henry Associates Inc vs. Microsoft Corporation
  

Expedia Inc

  
Compared with the overall equity markets, risk-adjusted returns on investments in Expedia Inc are ranked lower than 5 (%) 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
Wyndham Worldwide Corporation vs. Expedia Inc
Intercontinental Hotels Group plc vs. Expedia Inc
Ctrip International Ltd vs. Expedia Inc
Extended Stay America Inc vs. Expedia Inc
Choice Hotels International Inc vs. Expedia Inc
Home Inns Hotels Management Inc vs. Expedia Inc