Correlation Between Expedia and Interactive Strength
Can any of the company-specific risk be diversified away by investing in both Expedia and Interactive Strength 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 Expedia and Interactive Strength into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expedia Group and Interactive Strength Common, you can compare the effects of market volatilities on Expedia and Interactive Strength 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 Expedia with a short position of Interactive Strength. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expedia and Interactive Strength.
Diversification Opportunities for Expedia and Interactive Strength
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Expedia and Interactive is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding Expedia Group and Interactive Strength Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Interactive Strength and Expedia 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 Expedia Group are associated (or correlated) with Interactive Strength. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Interactive Strength has no effect on the direction of Expedia i.e., Expedia and Interactive Strength go up and down completely randomly.
Pair Corralation between Expedia and Interactive Strength
Given the investment horizon of 90 days Expedia Group is expected to generate 0.19 times more return on investment than Interactive Strength. However, Expedia Group is 5.37 times less risky than Interactive Strength. It trades about 0.06 of its potential returns per unit of risk. Interactive Strength Common is currently generating about -0.16 per unit of risk. If you would invest 14,365 in Expedia Group on September 2, 2024 and sell it today you would earn a total of 4,097 from holding Expedia Group or generate 28.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Expedia Group vs. Interactive Strength Common
Performance |
| Timeline |
| Expedia Group |
| Interactive Strength |
Expedia and Interactive Strength Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expedia and Interactive Strength
The main advantage of trading using opposite Expedia and Interactive Strength positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expedia position performs unexpectedly, Interactive Strength 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 Interactive Strength will offset losses from the drop in Interactive Strength's long position.| Expedia vs. Mondee Holdings | Expedia vs. MakeMyTrip Limited | Expedia vs. Tuniu Corp | Expedia vs. TripAdvisor |
| Interactive Strength vs. Grupo Simec SAB | Interactive Strength vs. The Joint Corp | Interactive Strength vs. Ironveld Plc | Interactive Strength vs. Avadel Pharmaceuticals PLC |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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