Correlation Analysis Between BP and Facebook

This module allows you to analyze existing cross correlation between BP and Facebook. You can compare the effects of market volatilities on BP 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 with a short position of Facebook. See also your portfolio center. Please also check ongoing floating volatility patterns of BP and Facebook.
 Time Horizon     30 Days    Login   to change
Symbolsvs

BP PLC  vs.  Facebook Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, BP is expected to under-perform the Facebook. In addition to that, BP is 1.36 times more volatile than Facebook. It trades about -0.18 of its total potential returns per unit of risk. Facebook is currently generating about 0.32 per unit of volatility. If you would invest  18,449  in Facebook on May 20, 2018 and sell it today you would earn a total of  1,292  from holding Facebook or generate 7.0% return on investment over 30 days.

Pair Corralation between BP and Facebook

-0.31
Time Period1 Month [change]
DirectionNegative 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding BP PLC and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook and BP 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 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 has no effect on the direction of BP i.e. BP and Facebook go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
BP  
0 

Risk-Adjusted Performance

Over the last 30 days BP has generated negative risk-adjusted returns adding no value to investors with long positions.
Facebook  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1168.06

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