Correlation Analysis Between Facebook and EURONEXT BEL-20

This module allows you to analyze existing cross correlation between Facebook and EURONEXT BEL-20. You can compare the effects of market volatilities on Facebook and EURONEXT BEL-20 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 Facebook with a short position of EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and EURONEXT BEL-20.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  EURONEXT BEL-20

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 2.6 times more return on investment than EURONEXT BEL-20. However, Facebook is 2.6 times more volatile than EURONEXT BEL-20. It trades about 0.15 of its potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.22 per unit of risk. If you would invest  18,087  in Facebook on June 22, 2019 and sell it today you would earn a total of  2,145  from holding Facebook or generate 11.86% return on investment over 30 days.

Pair Corralation between Facebook and EURONEXT BEL-20

0.84
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Facebook and EURONEXT BEL-20

Facebook Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and EURONEXT BEL-20 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EURONEXT BEL-20 and Facebook 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 Facebook are associated (or correlated) with EURONEXT BEL-20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURONEXT BEL-20 has no effect on the direction of Facebook i.e. Facebook and EURONEXT BEL-20 go up and down completely randomly.
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See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.


 
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