Correlation Between Sadot and Expedia

Can any of the company-specific risk be diversified away by investing in both Sadot 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 Sadot and Expedia into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sadot Group and Expedia Group, you can compare the effects of market volatilities on Sadot 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 Sadot with a short position of Expedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sadot and Expedia.

Diversification Opportunities for Sadot and Expedia

-0.26

Correlation Coefficient

Sadot  Expedia

Very good diversification

The 3 months correlation between Sadot and Expedia is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Sadot Group and Expedia Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expedia Group and Sadot 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 Sadot Group 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 Sadot i.e., Sadot and Expedia go up and down completely randomly.

Pair Corralation between Sadot and Expedia

Given the investment horizon of 90 days Sadot Group is expected to under-perform the Expedia. In addition to that, Sadot is 4.61 times more volatile than Expedia Group. It trades about -0.05 of its total potential returns per unit of risk. Expedia Group is currently generating about 0.15 per unit of volatility. If you would invest  16,685  in Expedia Group on May 11, 2025 and sell it today you would earn a total of  2,841  from holding Expedia Group or generate 17.03% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sadot Group  vs.  Expedia Group

Sadot Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Sadot Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in September 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Expedia Group

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Expedia Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Expedia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sadot and Expedia

The main advantage of trading using opposite Sadot and Expedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sadot 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.

The idea behind Sadot Group and Expedia Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.