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
Facebook Inc vs VeriSign Inc
Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.07 times less return on investment than VeriSign. But when comparing it to its historical volatility, Facebook Inc is 1.02 times less risky than VeriSign. It trades about 0.16 of its potential returns per unit of risk. VeriSign Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 12,055 in VeriSign Inc on February 16, 2018 and sell it today you would earn a total of 537.00 from holding VeriSign Inc or generate 4.45% return on investment over 30 days.
|Time Period||1 Month [change]|
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.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in VeriSign Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.