Correlation Between Expedia and Kitron ASA
Can any of the company-specific risk be diversified away by investing in both Expedia and Kitron ASA 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 Expedia and Kitron ASA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Expedia Group and Kitron ASA, you can compare the effects of market volatilities on Expedia and Kitron ASA 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 Kitron ASA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Expedia and Kitron ASA.
Diversification Opportunities for Expedia and Kitron ASA
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Expedia and Kitron is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Expedia Group and Kitron ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kitron ASA 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 are associated (or correlated) with Kitron ASA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kitron ASA has no effect on the direction of Expedia i.e., Expedia and Kitron ASA go up and down completely randomly.
Pair Corralation between Expedia and Kitron ASA
Given the investment horizon of 90 days Expedia is expected to generate 1.07 times less return on investment than Kitron ASA. In addition to that, Expedia is 1.77 times more volatile than Kitron ASA. It trades about 0.13 of its total potential returns per unit of risk. Kitron ASA is currently generating about 0.24 per unit of volatility. If you would invest 4,699 in Kitron ASA on April 4, 2025 and sell it today you would earn a total of 1,346 from holding Kitron ASA or generate 28.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.72% |
| Values | Daily Returns |
Expedia Group vs. Kitron ASA
Performance |
| Timeline |
| Expedia Group |
| Kitron ASA |
Expedia and Kitron ASA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Expedia and Kitron ASA
The main advantage of trading using opposite Expedia and Kitron ASA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Expedia position performs unexpectedly, Kitron ASA 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 Kitron ASA will offset losses from the drop in Kitron ASA's long position.| Expedia vs. Paiute Oil Mining | Expedia vs. AA Mission Acquisition | Expedia vs. Nicola Mining | Expedia vs. Barrick Mining |
| Kitron ASA vs. Nordhealth AS | Kitron ASA vs. Grong Sparebank | Kitron ASA vs. Sparebank 1 SMN | Kitron ASA vs. Sogn Sparebank |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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