Correlation Between EXPEDIA and Fomento Economico
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By analyzing existing cross correlation between EXPEDIA GROUP INC and Fomento Economico Mexicano, you can compare the effects of market volatilities on EXPEDIA and Fomento Economico 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 Fomento Economico. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXPEDIA and Fomento Economico.
Diversification Opportunities for EXPEDIA and Fomento Economico
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EXPEDIA and Fomento is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding EXPEDIA GROUP INC and Fomento Economico Mexicano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fomento Economico 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 INC are associated (or correlated) with Fomento Economico. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fomento Economico has no effect on the direction of EXPEDIA i.e., EXPEDIA and Fomento Economico go up and down completely randomly.
Pair Corralation between EXPEDIA and Fomento Economico
Assuming the 90 days trading horizon EXPEDIA GROUP INC is expected to generate 0.4 times more return on investment than Fomento Economico. However, EXPEDIA GROUP INC is 2.48 times less risky than Fomento Economico. It trades about -0.18 of its potential returns per unit of risk. Fomento Economico Mexicano is currently generating about -0.18 per unit of risk. If you would invest 10,100 in EXPEDIA GROUP INC on September 16, 2024 and sell it today you would lose (572.00) from holding EXPEDIA GROUP INC or give up 5.66% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 98.46% |
Values | Daily Returns |
EXPEDIA GROUP INC vs. Fomento Economico Mexicano
Performance |
Timeline |
EXPEDIA GROUP INC |
Fomento Economico |
EXPEDIA and Fomento Economico Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EXPEDIA and Fomento Economico
The main advantage of trading using opposite EXPEDIA and Fomento Economico positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXPEDIA position performs unexpectedly, Fomento Economico 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 Fomento Economico will offset losses from the drop in Fomento Economico's long position.EXPEDIA vs. Fomento Economico Mexicano | EXPEDIA vs. SNDL Inc | EXPEDIA vs. The Coca Cola | EXPEDIA vs. PepsiCo |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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