Pair Correlation Between Facebook and Equinix

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 and Equinix.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Facebook Inc  vs   Equinix Inc
 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook Inc is expected to generate 0.91 times more return on investment than Equinix. However, Facebook Inc is 1.09 times less risky than Equinix. It trades about 0.02 of its potential returns per unit of risk. Equinix Inc is currently generating about -0.09 per unit of risk. If you would invest  17,795  in Facebook Inc on November 15, 2017 and sell it today you would earn a total of  92  from holding Facebook Inc or generate 0.52% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Facebook and Equinix
0.62

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Facebook Inc

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

Equinix Inc

  
0 

Risk-Adjusted Performance

Over the last 30 days Equinix Inc has generated negative risk-adjusted returns adding no value to investors with long positions.