Pair Correlation Between Facebook and VeriSign

This module allows you to analyze existing cross correlation between Facebook Inc and VeriSign Inc. You can compare the effects of market volatilities on Facebook and VeriSign 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 VeriSign. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and VeriSign.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Facebook Inc  vs   VeriSign Inc
 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.02 times less return on investment than VeriSign. In addition to that, Facebook is 1.86 times more volatile than VeriSign Inc. It trades about 0.11 of its total potential returns per unit of risk. VeriSign Inc is currently generating about 0.21 per unit of volatility. If you would invest  10,508  in VeriSign Inc on September 17, 2017 and sell it today you would earn a total of  347  from holding VeriSign Inc or generate 3.3% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Facebook and VeriSign
0.67

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 VeriSign Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on VeriSign 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 VeriSign. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VeriSign Inc has no effect on the direction of Facebook i.e. Facebook and VeriSign go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Facebook Inc

  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.

VeriSign Inc

  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in VeriSign Inc are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.