This module allows you to analyze existing cross correlation between Facebook Inc and Equinix Inc. You can compare the effects of market volatilities on Facebook and Equinix 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 Equinix. See also your portfolio center
. Please also check ongoing floating volatility patterns of Facebook
Facebook Inc vs Equinix Inc
Allowing for the 30-days total investment horizon, Facebook is expected to generate 2.04 times less return on investment than Equinix. In addition to that, Facebook is 1.47 times more volatile than Equinix Inc. It trades about 0.09 of its total potential returns per unit of risk. Equinix Inc is currently generating about 0.26 per unit of volatility. If you would invest 44,657 in Equinix Inc on September 21, 2017 and sell it today you would earn a total of 2,219 from holding Equinix Inc or generate 4.97% return on investment over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Equinix Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Equinix Inc 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 Inc are associated (or correlated) with Equinix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equinix Inc has no effect on the direction of Facebook i.e. Facebook and Equinix go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Equinix Inc are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.