Correlation Analysis Between Facebook and Israel Index

Analyzing existing cross correlation between Facebook and Israel Index. You can compare the effects of market volatilities on Facebook and Israel Index 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 Facebook with a short position of Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and Israel Index.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

 Predicted Return Density 
    
  Returns 

Facebook Inc  vs.  Israel Index

 Performance (%) 
    
  Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.29 times more return on investment than Israel Index. However, Facebook is 1.29 times more volatile than Israel Index. It trades about 0.22 of its potential returns per unit of risk. Israel Index is currently generating about 0.11 per unit of risk. If you would invest  18,940  in Facebook on December 26, 2019 and sell it today you would earn a total of  2,854  from holding Facebook or generate 15.07% return on investment over 30 days.

Pair Corralation between Facebook and Israel Index

0.77
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy79.75%
ValuesDaily Returns

Diversification Opportunities for Facebook and Israel Index

Facebook Inc diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index and Facebook 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 Facebook are associated (or correlated) with Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of Facebook i.e. Facebook and Israel Index go up and down completely randomly.
    Optimize
See also your portfolio center. Please also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.