Correlation Between EXPEDIA and Independence Realty
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By analyzing existing cross correlation between EXPEDIA INC and Independence Realty Trust, you can compare the effects of market volatilities on EXPEDIA and Independence Realty 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 Independence Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPEDIA and Independence Realty.
Diversification Opportunities for EXPEDIA and Independence Realty
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between EXPEDIA and Independence is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding EXPEDIA INC and Independence Realty Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Independence Realty Trust 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 INC are associated (or correlated) with Independence Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Independence Realty Trust has no effect on the direction of EXPEDIA i.e., EXPEDIA and Independence Realty go up and down completely randomly.
Pair Corralation between EXPEDIA and Independence Realty
Assuming the 90 days trading horizon EXPEDIA INC is expected to under-perform the Independence Realty. But the bond apears to be less risky and, when comparing its historical volatility, EXPEDIA INC is 2.21 times less risky than Independence Realty. The bond trades about -0.03 of its potential returns per unit of risk. The Independence Realty Trust is currently generating about 0.57 of returns per unit of risk over similar time horizon. If you would invest 1,906 in Independence Realty Trust on September 2, 2024 and sell it today you would earn a total of 278.00 from holding Independence Realty Trust or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EXPEDIA INC vs. Independence Realty Trust
Performance |
| Timeline |
| EXPEDIA INC |
| Independence Realty Trust |
EXPEDIA and Independence Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXPEDIA and Independence Realty
The main advantage of trading using opposite EXPEDIA and Independence Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPEDIA position performs unexpectedly, Independence Realty 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 Independence Realty will offset losses from the drop in Independence Realty's long position.| EXPEDIA vs. Independence Realty Trust | EXPEDIA vs. Ecovyst | EXPEDIA vs. Balchem | EXPEDIA vs. Axalta Coating Systems |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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