This module allows you to analyze existing cross correlation between Facebook Inc and Harris Corporation. You can compare the effects of market volatilities on Facebook and Harris 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 Harris. See also your portfolio center
. Please also check ongoing floating volatility patterns of Facebook
Facebook Inc vs Harris Corp.
Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.88 times less return on investment than Harris. In addition to that, Facebook is 2.55 times more volatile than Harris Corporation. It trades about 0.1 of its total potential returns per unit of risk. Harris Corporation is currently generating about 0.48 per unit of volatility. If you would invest 12,898 in Harris Corporation on September 17, 2017 and sell it today you would earn a total of 692 from holding Harris Corporation or generate 5.37% return on investment over 30 days.
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Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and Harris Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Harris 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 Harris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harris has no effect on the direction of Facebook i.e. Facebook and Harris go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Harris Corporation are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.