Correlation Analysis Between Facebook and BSE

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

 Predicted Return Density 
      Returns 

Facebook Inc  vs.  BSE

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 1.41 times less return on investment than BSE. But when comparing it to its historical volatility, Facebook is 1.15 times less risky than BSE. It trades about 0.07 of its potential returns per unit of risk. BSE is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,735,033  in BSE on October 14, 2019 and sell it today you would earn a total of  276,573  from holding BSE or generate 7.4% return on investment over 30 days.

Pair Corralation between Facebook and BSE

0.38
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy89.06%
ValuesDaily Returns

Diversification Opportunities for Facebook and BSE

Facebook Inc diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and BSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BSE 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 BSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BSE has no effect on the direction of Facebook i.e. Facebook and BSE go up and down completely randomly.
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See also your portfolio center. Please also try Focused Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.


 
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