Pair Correlation Between Facebook and 21Vianet

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 and 21Vianet.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Facebook Inc  vs   21Vianet Group Inc
 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 10.39 times less return on investment than 21Vianet. But when comparing it to its historical volatility, Facebook Inc is 5.49 times less risky than 21Vianet. It trades about 0.1 of its potential returns per unit of risk. 21Vianet Group Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  616  in 21Vianet Group Inc on September 22, 2017 and sell it today you would earn a total of  153  from holding 21Vianet Group Inc or generate 24.84% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Facebook and 21Vianet
0.65

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy95.45%
ValuesDaily Returns

Diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Facebook Inc

  
6 

Risk-Adjusted Performance

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.

21Vianet Group Inc

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in 21Vianet Group Inc are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.