Correlation Analysis Between BP plc and Facebook

This module allows you to analyze existing cross correlation between BP plc and Facebook. 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 and Facebook.
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 plc is expected to generate 0.55 times more return on investment than Facebook. However, BP plc is 1.81 times less risky than Facebook. It trades about 0.13 of its potential returns per unit of risk. Facebook is currently generating about -0.15 per unit of risk. If you would invest  4,246  in BP plc on August 21, 2018 and sell it today you would earn a total of  110.00  from holding BP plc or generate 2.59% return on investment over 30 days.

Pair Corralation between BP plc and Facebook

-0.23
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 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 has no effect on the direction of BP plc i.e. BP plc and Facebook go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
BP plc  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BP plc are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
Facebook  
0 

Risk-Adjusted Performance

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

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1171.09

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