Facebook Performance

Facebook Inc -- USA Stock  

USD 174.8  0.24  0.14%

Facebook has performance score of 3 on a scale of 0 to 100. The firm shows Beta (market volatility) of 0.3739 which denotes to the fact that as returns on market increase, Facebook returns are expected to increase less than the market. However during bear market, the loss on holding Facebook will be expected to be smaller as well.. Although it is extremely important to respect Facebook Inc historical returns, it is better to be realistic regarding the information on equity current trending patternss. The philosophy in predicting future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By reviewing Facebook Inc technical indicators you can presently evaluate if the expected return of 0.0737% will be sustainable into the future. Facebook Inc right now shows a risk of 1.2666%. Please confirm Facebook Inc Jensen Alpha, Maximum Drawdown and the relationship between Coefficient Of Variation and Sortino Ratio to decide if Facebook Inc will be following its price patterns.
Investment Horizon     30 Days    Login   to change

Relative Risk vs. Return Landscape

If you would invest  17,217  in Facebook Inc on September 20, 2017 and sell it today you would earn a total of  263  from holding Facebook Inc or generate 1.53% return on investment over 30 days. Facebook Inc is generating 0.0737% of daily returns and assumes 1.2666% volatility on return distribution over the 30 days horizon. Put differently, 11% of equity instruments are less risky than the company on the bases of their historical return distribution and some 99% of equities are expected to be superior in generating returns on investments over the next 30 days.
 Daily Expected Return (%) 
      Risk (%) 
Allowing for the 30-days total investment horizon, Facebook Inc is expected to generate 1.67 times less return on investment than the market. In addition to that, the company is 5.38 times more volatile than its market benchmark. It trades about 0.06 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.52 per unit of volatility.

Operating Margin

Facebook Inc Operating Margin
Based on recorded statements Facebook Inc has Operating Margin of 46.66%. This is 268.08% lower than that of the Technology sector, and 207.26% lower than that of Internet Information Providers industry, The Operating Margin for all stocks is 527.68% lower than the firm.
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.

Facebook Daily Price Distribution

The median price of Facebook for the period between Wed, Sep 20, 2017 and Fri, Oct 20, 2017 is 171.59 with a coefficient of variation of 1.95. The daily time series for the period is distributed with a sample standard deviation of 3.33, arithmetic mean of 171.08, and mean deviation of 2.46. The Stock received some media coverage during the period.
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

One Month Efficiency

Facebook Sharpe Ratio = 0.0582
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Estimated Market Risk

 1.27
  actual daily
 
 89 %
of total potential
  

Expected Return

 0.07
  actual daily
 
 1 %
of total potential
  

Risk-Adjusted Return

 0.06
  actual daily
 
 3 %
of total potential
  
Based on monthly moving average Facebook is performing at about 3% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Facebook by adding it to a well-diversified portfolio.