Correlation Analysis Between WisdomTree India and Facebook

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

WisdomTree India Earnings ETF  vs.  Facebook Inc

 Performance (%) 
      Timeline 

Pair Volatility

Considering 30-days investment horizon, WisdomTree India Earnings ETF is expected to under-perform the Facebook. But the etf apears to be less risky and, when comparing its historical volatility, WisdomTree India Earnings ETF is 1.32 times less risky than Facebook. The etf trades about -0.01 of its potential returns per unit of risk. The Facebook is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  20,174  in Facebook on June 22, 2018 and sell it today you would earn a total of  820.00  from holding Facebook or generate 4.06% return on investment over 30 days.

Pair Corralation between WisdomTree India and Facebook

0.73
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding WisdomTree India Earnings ETF and Facebook Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Facebook and WisdomTree India 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 WisdomTree India Earnings ETF 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 WisdomTree India i.e. WisdomTree India and Facebook go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
WisdomTree India Ear  
0 

Risk-Adjusted Performance

Over the last 30 days WisdomTree India Earnings ETF has generated negative risk-adjusted returns adding no value to investors with long positions.
Facebook  
9 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.

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$1186.96

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