Correlation Between Merck and EXPEDIA
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By analyzing existing cross correlation between Merck Company and EXPEDIA GROUP INC, you can compare the effects of market volatilities on Merck 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 Merck with a short position of EXPEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Merck and EXPEDIA.
Diversification Opportunities for Merck and EXPEDIA
Very good diversification
The 3 months correlation between Merck and EXPEDIA is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Merck Company and EXPEDIA GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXPEDIA GROUP INC and Merck 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 Merck Company 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 GROUP INC has no effect on the direction of Merck i.e., Merck and EXPEDIA go up and down completely randomly.
Pair Corralation between Merck and EXPEDIA
Considering the 90-day investment horizon Merck Company is expected to under-perform the EXPEDIA. In addition to that, Merck is 12.46 times more volatile than EXPEDIA GROUP INC. It trades about -0.1 of its total potential returns per unit of risk. EXPEDIA GROUP INC is currently generating about -0.03 per unit of volatility. If you would invest 10,020 in EXPEDIA GROUP INC on August 28, 2024 and sell it today you would lose (4.00) from holding EXPEDIA GROUP INC or give up 0.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 59.09% |
| Values | Daily Returns |
Merck Company vs. EXPEDIA GROUP INC
Performance |
| Timeline |
| Merck Company |
| EXPEDIA GROUP INC |
Merck and EXPEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Merck and EXPEDIA
The main advantage of trading using opposite Merck and EXPEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Merck 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.| Merck vs. Capricor Therapeutics | Merck vs. Soleno Therapeutics | Merck vs. Bio Path Holdings | Merck vs. Moleculin Biotech |
| EXPEDIA vs. The Coca Cola | EXPEDIA vs. JPMorgan Chase Co | EXPEDIA vs. Dupont De Nemours | EXPEDIA vs. Alcoa Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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