Correlation Between Axalta Coating and EXPEDIA
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By analyzing existing cross correlation between Axalta Coating Systems and EXPEDIA INC, you can compare the effects of market volatilities on Axalta Coating 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 Axalta Coating with a short position of EXPEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Axalta Coating and EXPEDIA.
Diversification Opportunities for Axalta Coating and EXPEDIA
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Axalta and EXPEDIA is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Axalta Coating Systems and EXPEDIA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPEDIA INC and Axalta Coating 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 Axalta Coating Systems 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 Axalta Coating i.e., Axalta Coating and EXPEDIA go up and down completely randomly.
Pair Corralation between Axalta Coating and EXPEDIA
Given the investment horizon of 90 days Axalta Coating Systems is expected to generate 2.72 times more return on investment than EXPEDIA. However, Axalta Coating is 2.72 times more volatile than EXPEDIA INC. It trades about 0.22 of its potential returns per unit of risk. EXPEDIA INC is currently generating about -0.03 per unit of risk. If you would invest 3,798 in Axalta Coating Systems on September 2, 2024 and sell it today you would earn a total of 248.00 from holding Axalta Coating Systems or generate 6.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Axalta Coating Systems vs. EXPEDIA INC
Performance |
| Timeline |
| Axalta Coating Systems |
| EXPEDIA INC |
Axalta Coating and EXPEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Axalta Coating and EXPEDIA
The main advantage of trading using opposite Axalta Coating and EXPEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Axalta Coating 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.| Axalta Coating vs. Linde plc Ordinary | Axalta Coating vs. Air Products and | Axalta Coating vs. Aquagold International | Axalta Coating vs. Thrivent High Yield |
| EXPEDIA vs. Independence Realty Trust | EXPEDIA vs. Ecovyst | EXPEDIA vs. Balchem | EXPEDIA vs. Axalta Coating Systems |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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