Correlation Between ContextlogicInc and Expedia
Can any of the company-specific risk be diversified away by investing in both ContextlogicInc and Expedia 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 ContextlogicInc and Expedia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ContextlogicInc and Expedia Group, you can compare the effects of market volatilities on ContextlogicInc 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 ContextlogicInc with a short position of Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of ContextlogicInc and Expedia.
Diversification Opportunities for ContextlogicInc and Expedia
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ContextlogicInc and Expedia is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding ContextlogicInc and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group and ContextlogicInc 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 ContextlogicInc 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 has no effect on the direction of ContextlogicInc i.e., ContextlogicInc and Expedia go up and down completely randomly.
Pair Corralation between ContextlogicInc and Expedia
Given the investment horizon of 90 days ContextlogicInc is expected to generate 1.22 times more return on investment than Expedia. However, ContextlogicInc is 1.22 times more volatile than Expedia Group. It trades about -0.04 of its potential returns per unit of risk. Expedia Group is currently generating about -0.15 per unit of risk. If you would invest 571.00 in ContextlogicInc on February 7, 2024 and sell it today you would lose (32.00) from holding ContextlogicInc or give up 5.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
ContextlogicInc vs. Expedia Group
Performance |
Timeline |
ContextlogicInc |
Expedia Group |
ContextlogicInc and Expedia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ContextlogicInc and Expedia
The main advantage of trading using opposite ContextlogicInc and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ContextlogicInc 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.ContextlogicInc vs. Appian Corp | ContextlogicInc vs. Okta Inc | ContextlogicInc vs. MongoDB | ContextlogicInc vs. Twilio Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
CEOs Directory Screen CEOs from public companies around the world | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |