This module allows you to analyze existing cross correlation between Facebook and NASDAQ UK. You can compare the effects of market volatilities on Facebook and NASDAQ UK 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 NASDAQ UK. See also your portfolio center. Please also check ongoing floating volatility patterns of Facebook and NASDAQ UK.
|Horizon||30 Days Login to change|
Predicted Return Density
Facebook Inc vs. NASDAQ UK
Allowing for the 30-days total investment horizon, Facebook is expected to generate 3.0 times more return on investment than NASDAQ UK. However, Facebook is 3.0 times more volatile than NASDAQ UK. It trades about 0.15 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.02 per unit of risk. If you would invest 18,272 in Facebook on June 17, 2019 and sell it today you would earn a total of 2,112 from holding Facebook or generate 11.56% return on investment over 30 days.
Pair Corralation between Facebook and NASDAQ UK
|Time Period||2 Months [change]|
Diversification Opportunities for Facebook and NASDAQ UK
Overlapping area represents the amount of risk that can be diversified away by holding Facebook Inc and NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK 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 NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of Facebook i.e. Facebook and NASDAQ UK go up and down completely randomly.
See also your portfolio center. Please also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .