Correlation Between EXPEDIA and Trupanion
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By analyzing existing cross correlation between EXPEDIA INC and Trupanion, you can compare the effects of market volatilities on EXPEDIA and Trupanion 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 Trupanion. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPEDIA and Trupanion.
Diversification Opportunities for EXPEDIA and Trupanion
Pay attention - limited upside
The 3 months correlation between EXPEDIA and Trupanion is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding EXPEDIA INC and Trupanion in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trupanion 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 Trupanion. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trupanion has no effect on the direction of EXPEDIA i.e., EXPEDIA and Trupanion go up and down completely randomly.
Pair Corralation between EXPEDIA and Trupanion
Assuming the 90 days trading horizon EXPEDIA INC is expected to generate 0.18 times more return on investment than Trupanion. However, EXPEDIA INC is 5.62 times less risky than Trupanion. It trades about -0.03 of its potential returns per unit of risk. Trupanion is currently generating about -0.02 per unit of risk. If you would invest 9,228 in EXPEDIA INC on September 2, 2024 and sell it today you would lose (36.00) from holding EXPEDIA INC or give up 0.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EXPEDIA INC vs. Trupanion
Performance |
| Timeline |
| EXPEDIA INC |
| Trupanion |
EXPEDIA and Trupanion Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXPEDIA and Trupanion
The main advantage of trading using opposite EXPEDIA and Trupanion positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPEDIA position performs unexpectedly, Trupanion 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 Trupanion will offset losses from the drop in Trupanion's long position.| EXPEDIA vs. Independence Realty Trust | EXPEDIA vs. Ecovyst | EXPEDIA vs. Balchem | EXPEDIA vs. Axalta Coating Systems |
| Trupanion vs. First American | Trupanion vs. Assurant | Trupanion vs. NMI Holdings | Trupanion vs. MGIC Investment 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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