This module allows you to analyze existing cross correlation between BP plc and Facebook Inc. You can compare the effects of market volatilities on BP plc and Facebook 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 BP plc with a short position of Facebook. See also your portfolio center
. Please also check ongoing floating volatility patterns of BP plc
BP p.l.c. vs Facebook Inc
Allowing for the 30-days total investment horizon, BP plc is expected to generate 6.68 times less return on investment than Facebook. But when comparing it to its historical volatility, BP plc is 1.07 times less risky than Facebook. It trades about 0.03 of its potential returns per unit of risk. Facebook Inc is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 17,127 in Facebook Inc on October 22, 2017 and sell it today you would earn a total of 747 from holding Facebook Inc or generate 4.36% 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 BP p.l.c. and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook Inc and BP plc 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 BP plc are associated (or correlated) with Facebook. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Facebook Inc has no effect on the direction of BP plc i.e. BP plc and Facebook go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in BP plc are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Facebook Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.