This module allows you to analyze existing cross correlation between Facebook Inc and 21Vianet Group Inc. You can compare the effects of market volatilities on Facebook and 21Vianet 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 21Vianet. See also your portfolio center
. Please also check ongoing floating volatility patterns of Facebook
Facebook Inc vs 21Vianet Group Inc
Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.98 times less return on investment than 21Vianet. But when comparing it to its historical volatility, Facebook Inc is 1.85 times less risky than 21Vianet. It trades about 0.19 of its potential returns per unit of risk. 21Vianet Group Inc is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 780 in 21Vianet Group Inc on December 24, 2017 and sell it today you would earn a total of 82 from holding 21Vianet Group Inc or generate 10.51% 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 21Vianet Group Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on 21Vianet Group 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 21Vianet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Vianet Group Inc has no effect on the direction of Facebook i.e. Facebook and 21Vianet go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in 21Vianet Group Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.