Pair Correlation Between Microsoft and Expedia

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. See also your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Expedia.
Investment Horizon     30 Days    Login   to change
 Microsoft Corp.  vs   Expedia Inc.
 Performance (%) 
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Pair Volatility

Given the investment horizon of 30 days, Microsoft Corporation is expected to generate 1.05 times more return on investment than Expedia. However, Microsoft is 1.05 times more volatile than Expedia Inc. It trades about 0.04 of its potential returns per unit of risk. Expedia Inc is currently generating about -0.1 per unit of risk. If you would invest  6,427  in Microsoft Corporation on January 26, 2017 and sell it today you would earn a total of  35.00  from holding Microsoft Corporation or generate 0.54% return on investment over 30 days.
Correlation Coefficient
Pair Corralation between Microsoft and Expedia


Time Period1 Month [change]
DirectionNegative MSFT Moved Down vs EXPE
ValuesDaily Returns


Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Microsoft Corp. and Expedia Inc. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Expedia Inc and Microsoft 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 Microsoft Corporation 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 Inc has no effect on the direction of Microsoft i.e. Microsoft and Expedia go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
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Risk-adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Microsoft Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.

Expedia Inc


Risk-adjusted Performance

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