This module allows you to analyze existing cross correlation between Facebook and DOW. You can compare the effects of market volatilities on Facebook and DOW 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 DOW. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and DOW.
|Time Horizon||30 Days Login to change|
Facebook Inc vs. DOW
Allowing for the 30-days total investment horizon, Facebook is expected to under-perform the DOW. In addition to that, Facebook is 1.55 times more volatile than DOW. It trades about -0.07 of its total potential returns per unit of risk. DOW is currently generating about -0.03 per unit of volatility. If you would invest 2,496,248 in DOW on March 24, 2018 and sell it today you would lose (70,149) from holding DOW or give up 2.81% of portfolio value over 30 days.