Correlation Analysis Between Facebook and SP 500

This module allows you to analyze existing cross correlation between Facebook and S&P 500. You can compare the effects of market volatilities on Facebook and SP 500 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 SP 500. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and SP 500.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

 Predicted Return Density 

Facebook Inc  vs.  S&P 500

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, Facebook is expected to generate 3.74 times more return on investment than SP 500. However, Facebook is 3.74 times more volatile than S&P 500. It trades about 0.08 of its potential returns per unit of risk. S&P 500 is currently generating about 0.23 per unit of risk. If you would invest  15,004  in Facebook on February 17, 2019 and sell it today you would earn a total of  993.00  from holding Facebook or generate 6.62% return on investment over 30 days.

Pair Corralation between Facebook and SP 500

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Facebook and SP 500

Facebook Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and S&P 500 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SP 500 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 SP 500. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP 500 has no effect on the direction of Facebook i.e. Facebook and SP 500 go up and down completely randomly.

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See also your portfolio center. Please also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.